Business Briefing

Capita Group PLC 27 November 2002 27th November 2002 The Capita Group Plc Business Briefing The Capita Group Plc ('Capita'), one of the UK's leading professional support services organisations, is today holding a business briefing in London for institutional investors and analysts. Capita will give a review of current trading which continues to show strong performance. The Group has won major contracts worth £1.1bn during the year (2001: £744m) and is currently working on bids worth in excess of £1bn. In addition to the major contract wins, there has been a strong focus during the year on creating incremental growth through account development of Capita's existing clients. This has resulted in new, forward contracted revenues of some £155m. This is analysed as follows: * the development of our long-term local government contracts with Norfolk, Cumbria and Blackburn with Darwen has generated further revenues of £105m over the life of the contracts, equating to annualised revenues of £13m. * Capita Insurance Services has recently extended contracts to the value of £32m with clients including Zurich Financial Services, Northern Rock and XL Wire Group. * Capita IT Services has generated a further £18m through account development across its portfolio of public and private sector clients. Sales to new customers across our businesses also remain buoyant. We continue to be highly selective regarding the business development opportunities and extensions we pursue. The Group also confirms that it remains comfortable with analysts' consensus forecasts for 2002 and 2003. The strong cash flow from operations, the focus on organic growth coupled with the reduction in capital expenditure that will occur because of the nature of the bids that the Group is currently pursuing will mean that the free cash flow for the year ending 31st December 2003 is anticipated to be approximately £60m. The nine markets in the UK in which the Group operates are all active giving the Group considerable options about where it bids across both the public and private sectors. Capita is not reliant on any one market and its infrastructure of business centres is both flexible and scaleable. The briefing will cover four other areas: 1. A report on the progress of the BBC TV Licence contract that started on 1st July 2002. The contract, worth £500m to the Group over 10 years, has started well with operating performance ahead of previous levels on all measures. 2. An update on the Insurance, Life and Pensions market, where the Group is positioned to take advantage of an increasing number of opportunities. Further information will be given about the Lincoln Life contract which started on 1st August 2002. This service is already meeting all of its 31 contracted service levels and is trading ahead of expectations. 3. A presentation on the development of the local government market and the strong business drivers to partner with the private sector. 4. An update on the progress of Capita's contract with TFL regarding the congestion charging scheme. All required milestones have been met during the implementation. This will include a demonstration of the technologies used in the service and, more generally, the future opportunities in the Transport Management sector. -Ends- For further information: The Capita Group Plc: 020 7799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Communications Director Press Office: 020 7544 3141 Finsbury: 020 7251 3801 Morgan Bone Mark Harris The Capita Group Plc is the UK's leading provider of integrated professional support service 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 the public and private sector. With more than 17,000 employees at over 200 UK sites, Capita is quoted on the London Stock Exchange (CPI.L) and is a FTSE 100 company with estimated revenues for 2002 of £895 million. For further information, visit www.capita.co.uk. This information is provided by RNS The company news service from the London Stock Exchange

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