Flagship Education Project Choice for DfEE

Capita Group PLC
5 May 2000


    DfEE Selects Capita for Flagship Education Project
                             
                             
Capita, the professional support services Group, is pleased
to   announce   that  the  Department  for  Education   and
Employment  (DfEE)  has selected the company  as  preferred
partner  to  administer  the Individual  Learning  Accounts
scheme  and  has  now  entered into  the  final  stages  of
contract negotiation.

It  is  expected that the contract, worth in excess of  £50
million over 5 years subject to demand, will create 250 new
jobs  in  Capita's established customer service centres  in
Darlington  and Coventry.  To be launched later this  year,
it is estimated that Capita will administer over 10 million
enquiries  in the first year through customer call  centres
and interactive web based services.

This contract will further consolidate Capita's position as
market   leader   in   education   support   services   and
demonstrates Capita's intention to play a major role in re-
shaping the way in which Education services are delivered.

Rod Aldridge, Executive Chairman of Capita commented:  'Our
key  strength is in being a strong operational  partner  in
the   implementation   of   policy   initiatives,   through
innovative  and cost effective service design,  transition,
implementation and operation.  The core of this contract is
customer  service, data processing and distribution,  which
naturally  exploits  our solid track record  of  delivering
excellent  customer  services.   Through  our  network   of
leading edge customer service centres, we currently  handle
over  8  million public service telephone calls, and across
the Group we interact with over 20 million individuals.  We
are  delighted  to have been chosen by the  DfEE  as  their
preferred partner in this project.'


For further information please contact:

The Capita Group Plc                         020 7799 1525
Rod Aldridge, Executive Chairman
Shona Nichols, Group Marketing Director

Issued by
Hogarth Partnership, John Olsen              020 7357 9477



Notes to Editors:

Individual  Learning Accounts form a central  part  of  the
Government's vision for a new framework of post-16 learning
which  aims  to  stimulate a culture of  lifelong  learning
within  society.   The  founding principles  of  Individual
Learning  Accounts  are  that individuals  best  understand
their  training  needs and should share in the  funding  of
their  own development.  Individual Learning Accounts  will
create a portable personal learning account, contributed to
by  the Individual, Government and Employers, to be used to
fund a wide range of learning.

The  Capita  Group  Plc is one of the largest  and  fastest
growing professional support services organisations in  the
UK.   The  Group  delivers a range of integrated  solutions
encompassing  customer services, human  resource  services,
software  services,  systems  and  strategic  support   and
property  services  to  both  public  sector  and   private
organisations.   With  over 6,700 people  at  over  100  UK
sites, Capita is quoted on the London Stock Exchange with a
turnover  of  £327  million and a market capitalisation  of
over £3.5 billion, Capita became a FTSE 100 company on 20th
March 2000.

The  Holway  Report 1999, estimates that the UK market  for
outsourcing  services  will  exceed  £8bn  by  2002.    The
education  market,  which now represents  17%  of  Capita's
turnover, is undergoing significant change.

Capita   is   a  major  contributor  to  raising  education
standards  in the UK working in partnership with  156  LEAs
and  23,000 schools.  For more information on Capita please
visit our website at www.capita.co.uk.