EMA contract extension

Capita Group PLC
14 December 2005



  LEARNING AND SKILLS COUNCIL EXTENDS BREADTH OF CAPITA'S CONTRACT TO DELIVER
                        EDUCATION MAINTENANCE ALLOWANCE

   Capita to manage the extension of EMA to young people on unwaged training
                                   programmes

The Capita Group Plc (Capita) has signed an extended agreement with the Learning
and Skills Council (LSC) to manage the administration of the forthcoming
broadening of the Education Maintenance Allowance (EMA) scheme. This will extend
EMA to 65,000 young people who take up Entry to Employment (E2E) and
Programme-Led Pathways (PLP) courses, which are funded by the LSC, from April
2006.

The agreement, valued at £11.4m over three years with an option to extend for a
further two years, builds upon the Government's commitment to help young people
fulfil their educational potential. Capita will now be responsible for managing
the extended service alongside its existing contract. Capita administers
end-to-end service provision, including accepting and processing applications
for the allowance from potential recipients and administering the agreed weekly
payments and bonuses. The extended agreement will also include the training of
LSC-funded, work-based learning providers on EMASYS, the Capita-created online
system used by schools and colleges throughout England.

'We're extremely proud to play a role in the broadening of this innovative
scheme which encourages young people to continue learning and to develop the
skills required to meet their ambitions,' commented Rod Aldridge, Executive
Chairman of The Capita Group Plc. 'Capita's unique application and payment
process created for EMA has, for the first time, allowed over 3,000 schools and
colleges to use a shared online system. The extension to include unwaged
trainees is further endorsement of the scheme's operational success.'

                                     -Ends-

Notes:

Announced in July 2002, EMA was introduced as an allowance payable to students
between the ages of 16-19 to encourage attendance at school and college. As a
result, young people can receive up to £30 a week, depending on household
income, with additional bonuses, worth up to £500 over two years, for attendance
and achievement.

In September 2003, the DfES awarded Capita the EMA contract valued at £48.4m
over five years with an option to extend for a further two years.


For further information please contact:

The Capita Group Plc [phone]

Rod Aldridge, Executive Chairman

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director


The Capita Press Office 0870 2400 488

The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 23,000 employees at more than 230
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285
million.

Capita has secured a number of awards including Best BPO Services Provider 2004.

Further information on The Capita Group Plc can be found at: www.capita.co.uk




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