Acquisition, etc

CAPITA GROUP PLC
21 October 1999

     Capita enhances its education and human resource services

    Acquisition of Capstan Limited and Capstan Northern Limited
                            ('Capstan')

The   Capita   Group  Plc  ('Capita')  has  today  announced   the
acquisition  of  Capstan for £13 million.  Capstan  is  a  leading
teacher placement agency which was founded in 1993 in response  to
the  opening up of the teacher supply market to the private sector
and the growing shortage of teachers in the United Kingdom.

Capstan,  which employs 70 staff in the United Kingdom,  generated
some £400,000 of profit before taxation on turnover of £17 million
and  net  assets of £196,000 in the year to 31 March 1999. Capstan
fills  up  to 5,000 teacher supply vacancies in a week and  up  to
1,400 supply teachers per day across the country.

The  initial  purchase  consideration of  £13  million  is  to  be
satisfied  by  the payment of £6 million in cash and  through  the
issue of 884,397 new ordinary shares in Capita ('the consideration
shares').   The  shares  are  to  be  issued  to  trustees   whose
beneficiary  is the management team, who founded the business  and
who  will continue to run the operation.  The consideration shares
are  to  be retained until at least 30 September 2002.  A  further
consideration  of  £500,000 will paid on 31 March  2003  based  on
specific performance criteria.

Rod Aldridge, Executive Chairman of Capita, commented:

'The  acquisition of Capstan enhances Capita's presence in the  UK
education  market  and  provides  an  interface  between  Capita's
existing   activities  in  this  sector  and  our  human  resource
services.  The interaction of these two service areas will enhance
our  offering  to the education sector, increase our sales  routes
into this market and open up further opportunities for the Group.'

Capita  is  already  a leading support services  provider  to  the
education sector with relationships with more than 80 per cent  of
UK  schools  and extensive penetration of the Higher  and  Further
Education market sectors.  The Group's human resource services now
span both the private and public sectors with specialist expertise
across  the  entire employee cycle focussing on  both  sector  and
service specific requirements.

The  consideration  shares of 2p each in  Capita  will  be  issued
credited  as  fully paid and will rank pari passu in all  respects
with  Capita's existing ordinary shares. Application has been made
to  the  London Stock Exchange for these shares to be admitted  to
the Official List and this is expected to take place on 22 October
1999.


For further information:

The Capita Group Plc                                 0171 799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Issued by                                            0171 357 9477
Hogarth Partnership, John Olsen/James Longfield


Notes to Editors

The  Capita  Group Plc is one of the largest and  fastest  growing
professional support organisations in the UK. The Group delivers a
range    of    integrated    solutions   encompassing    customer,
administration  and human resources services, IT, consultancy  and
property services to both public sector and private organisations.
With over 7,000 people operating from some 80 UK sites, Capita  is
quoted on the London Stock Exchange and is FTSE 250 company with a
market capitalisation of over £1.6 billion.

For further information, please visit the Group's website:-
www.capitagroup.co.uk