Acquisition

Capita Group PLC 05 September 2007 CAPITA 5 September 2007 CAPITA ACQUIRES PENSIONS FIRM HIGHAM DUNNETT SHAW The Capita Group plc ('Capita') today announces the acquisition of Higham Dunnett Shaw (HDS) for a consideration of £15 million on a cash free/debt free basis. The acquisition will add valuable new expertise and added capacity to Capita Hartshead's core pensions management and administration business. Capita Hartshead is the largest specialist pensions administration organisation in the UK providing an individually tailored pension scheme management and administration service. The acquisition of HDS will enhance its ability to deliver technically challenging pensions administration, consultancy and actuarial services to corporate clients. HDS's operating profit for the 12 months ended 31 December 2007 is forecast to be £2.0m on turnover of £21.1m. Paul Pindar, Chief Executive of the Capita Group Plc said: 'The acquisition of Higham Dunnett Shaw will enhance and broaden Capita Hartshead's position in the pensions administration market. Its current business provides a number of synergies with our existing service - for example in Pension Protection Fund support services. And it adds important new services, such as expertise in the bulk purchase annuities market which is becoming increasingly important. We are confident that the acquisition will enable us to provide a full end-to-end service for clients of all sizes and achieve significant economies of scale. ' Jocelyn Blackwell, Chief Executive Officer of HDS, said: 'HDS has a long track-record of designing and implementing efficient, cost-effective, and technically compliant solutions to the requirements that flow from major changes in the life and pensions sector. Over the last five years it has built a substantial business from a base of pension wind-ups, and pensions mis-selling and, in addition to these core services have now established a capability in three developing markets that present significant value-add growth opportunities; customer retention, pension transition services and Pension Protection Fund (PPF) assessment. Being part of Capita Hartshead will enable us to realise our full potential in these markets.' HDS employs around 260 staff located across four cities - London, Edinburgh, Telford and Leeds. -ends- For further information please contact: Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director Tel: 020 7799 1525 Media enquiries: Caroline Mooney Capita press office Tel: 0207 654 2152 or 0870 2400 488 (out of hours) Notes to editors: The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass business process outsourcing, (BPO), customer services, administration and support, human resources, ICT, property consultancy, finance & treasury and consultancy delivered to both public sector and private organisations. With 27,800 employees at more than 250 offices across the UK, Channel Islands, Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2006 of £1,739 million. Further information on The Capita Group Plc can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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