AGM Statement

Capita Group PLC
01 May 2007



                        Annual General Meeting Statement

The Capita Group Plc ('Capita'), the UK's leading business process outsourcing
('BPO') and professional services company, is holding its Annual General Meeting
in London today. At the meeting, Eric Walters, Non-Executive Chairman, will make
the following comments:


Results for 2006:


'2006 was another active and successful year for the Group. We delivered strong
performance and secured record levels of new business, strengthening our
position as the market leading provider of BPO services in the UK.


In the year ended 31 December 2006:


   •Turnover increased by 21% to £1,739m (2005: £1,436m).
   •Operating profits before amortisation and after share based payment
    charge rose by 23% to £225.1m (2005: £183.1m) and profits before taxation
    and amortisation and after share based payment charge increased by 18% to
    £200.1m (2005: £169.6m).
   •Earnings per share before amortisation and after share based payment
    charge grew by 24% to 23.1p (2005: 18.6p).
   •Operating cash flow rose by 20% to £279m (2005: £232m).
   •We increased dividends by 29% and returned a further £245m to
    shareholders through purchasing our own shares. In total, including the
    proposed final dividend, we will be returning £301m (2005: £96m) to
    shareholders in respect of the 2006 financial year.


Update on 2007:


2007 is progressing well. Our bid pipeline is healthy and contains some exciting
opportunities, particularly in the life and pensions and local government
markets. Behind this is an active prospect list of opportunities which are yet
to reach a shortlist stage.


In the first 4 months of the year, we have announced that we have been selected
to deliver a number of new major contracts with a total value of £434m:


   •Countrywide Assured - to provide administrative services for
    approximately 80,000 life and pensions policies in a deal worth £19m over 15
    years.


   •Swindon Borough Council - to deliver a wide range of local government
    services in a partnership worth approximately £243m over 15 years (this
    contract had previously been estimated to be worth £140m over 10 years when
    we were selected as preferred supplier in October 2006).


   •Department for Work and Pensions, the Department for Education and Skills
    and the Health and Safety Executive - selected as preferred partner to
    provide outsourced occupational health services, estimated to be worth £10m
    over 5 years.


   •Southampton City Council - selected as preferred bidder to develop a 10
    year strategic partnership valued at approximately £290m. Final negotiations
    are currently in progress. The contract is expected to commence on 1 October
    2007.


   •Official Solicitor and Public Trustee ('OSPT') - Capita Trust has been
    chosen to act as the new Trustee of an initial group of 471 private trusts
    managed by the OSPT in a contract worth £12m over 10 years.


Acquisitions also form an important part of our growth strategy. In the first 4
months of the year to 30 April 2007, we acquired 6 businesses for a total
initial consideration of £62m.


Small to medium sized acquisitions help us to enter new markets, strengthen
existing market positions and build economies of scale, or access a new customer
base. For example, Harry Weeks, a business travel software company which we
acquired for an initial consideration of £21m in February 2007, gives us the
technology to materially reduce the cost of rail travel for our clients and
enhances our proposition in the travel administration market which we entered in
2005 with the acquisition of Lonsdale. The purchase of CMGL for £32m in March
2007 expands our offering and client base in the outsourced claims and insurance
management services arena, particularly within the General Insurer and Corporate
markets.


We have also completed 4 smaller transactions. In particular, we acquired a HR
consultancy and research operation from North Bristol NHS Trust, strengthening
our position in the health market and expanding our HR offering. We have also
acquired Global Fund Administration Limited (GFA), a leading provider of fund
administration services to hedge funds. The acquisition gives Capita access to a
rapidly growing marketplace and adds the offshore jurisdiction of Gibraltar to
our existing fund administration services. We anticipate making further small
acquisitions during the remainder of 2007 and we will continue to be extremely
selective.


We have also continued to undertake opportunistic share buybacks to maintain an
efficient capital structure and minimise our long term cost of capital. In the
first four months of the year, the Group has bought back 4.5m shares
(representing 0.74% of the issued share capital) at an average price of 644p.
Following these buybacks, there are 618.5m shares in issue. We will continue to
look for opportunities to return further value to shareholders through share
buybacks and a progressive dividend policy.


Prospects


The market for BPO in the UK and Ireland continues to provide excellent growth
opportunities with industry analysts estimating total market potential at
£94.8bn annually. In 2006, the market was estimated at £4.6bn, split 35% and 65%
between the public and private sectors respectively.* Capita's public/private
sector split is currently 52%/48% and over time we expect this to move closer to
the overall market.


Current trading is very encouraging. Our infrastructure and capability provide
us with a strong competitive edge across our markets and enable us to present
attractive propositions to clients. As a result of our successes in 2006 and
progress in early 2007, the ingredients for a successful full year are already
in place. The Board is confident that shareholders will be pleased by the
Group's performance for the full year. The prospects for future growth remain
excellent.'


* Source: Ovum


-Ends-


For further information please contact:

The Capita Group Plc [phone]

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

Press enquiries:

Capita press office

Tel: [phone]

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



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