Acquisition

Capita Group PLC
20 June 2002


20 June 2002



                              THE CAPITA GROUP PLC

  Capita further extends HR Service offering to include staff absence and cost
                              management services

            £18.6 million acquisition of Wynchgate Group Businesses



The Capita Group Plc ('Capita') has further expanded its HR Service offering by
acquiring three businesses from the Wynchgate Group ('Wynchgate').  The
businesses specialise in providing absence and related cost management services
for essential staff, primarily across the education sector and increasingly the
health sector.

Capita has acquired three of four businesses comprising the Wynchgate Group for
an initial consideration of £18.6 million.  The purchase consideration is to be
satisfied by the payment of £10.3 million cash, the issue of 1,315,101 new
ordinary shares in Capita ('the consideration shares') and £4.0 million of loan
notes.  An additional deferred maximum payment of £8.0 million dependent on
future performance is payable in March 2005.  The businesses achieved a proforma
profit of £1.4 million on turnover of £17.1 million in the year to 31st December
2001 and have experienced strong growth in the current year.  The businesses
transfer with assets of £0.1 million and this acquisition will be earnings
enhancing in the current year.

The core business trades under the name BEST and is the UK's leading provider of
staff absence and associated cost management services to the state education
sector, typically through three year contracts.  BEST's client base includes 42
LEAs and over 2,000 schools and a growing number of not-for-profit health
organisations.  BEST utilises an innovative IT solution which assists with
monitoring and managing staff absenteeism across essential services, in order to
increase attendance and to reduce overall costs of absenteeism.  The monthly
absence data submitted to BEST is encrypted and provides a valuable information
data bank that allows meaningful analysis of insurance claims against risk data.
Using this data, BEST acts as an informed intermediary between employers and
insurance companies to manage down associated costs of absenteeism.

Rod Aldridge, Executive Chairman of the Capita Group Plc, said:

'The acquisition of BEST naturally complements our broad HR service offering and
adds further value to the support services solutions we offer to the education
and health markets.

There is considerable scope for us to grow the BEST business by introducing
their services to Capita's wider education client base of 156 LEAs and 23,000
schools and by assisting BEST to enter new market segments across the wider
public and private sectors, where staff cover must be maintained to run
essential services within limited budgets.'

The consideration shares will be issued and credited as fully paid and will rank
pari passu in all respects with Capita's existing ordinary shares.  Application
has been made to the UK Listing Authority and the London Stock Exchange for
these shares to be admitted to the Official List and dealings are expected to
commence on 26th June 2002.



                                    - Ends -



For further information:

The Capita Group Plc                                          020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Capita Press Office                                           020 7544 3141

Issued by Finsbury Group                                      020 7251 3801
Morgan Bone
Mark Harris





Notes to editors:

The Capita Group Plc is a leading provider of integrated professional support
services solutions.  The Group's service capabilities encompass customer
services, insurance services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations.  With 16,000 people at over 160 UK sites,
Capita is quoted on the London Stock Exchange and is a FTSE 100 company with
estimated revenues for 2002 of £895 million.  In November 2001 Capita was
awarded the Management Today Most Admired Business Services Company Award.



                      This information is provided by RNS
            The company news service from the London Stock Exchange