Issue of Debt

Capita Group PLC 24 June 2002 24 June 2002 THE CAPITA GROUP PLC The Capita Group Plc issues £125,000,000 Equivalent Senior Unsecured Notes due 2009/12 The Capita Group Plc ('Capita') is pleased to announce that it has today completed a private placement of £125,000,000 equivalent of 7 and 10 year Senior Notes with a group of UK and US insurance companies. The Notes, which are unsecured, are repayable in full in 2009 and 2012 and have been swapped into floating rate Sterling. The Group is not exposed to currency risk. Gordon Hurst, Capita's Finance Director, commented: 'During the last two and a half years the acquisitions we have made have been financed mainly from our internal resources and short term borrowings. For some time we have been considering further strengthening the Group's financing capability by putting in place some medium term debt to replace these short term borrowings and feel that this is an opportune time to put this debt on to Capita's balance sheet at attractive rates. We were delighted that the offer was four times oversubscribed and the rates achieved were highly competitive. 'We continue our stated strategy of pursuing small bolt-on acquisitions. Capita remains a strongly cash generative company. Indeed, over the past five years our operating profit to cash conversion rate has averaged 113%. We also foresee no material change on working capital requirements going forward.' The Royal Bank of Scotland plc was Sole Agent on the transaction. - Ends - For further information: The Capita Group Plc 020 7799 1525 Gordon Hurst, Group Finance Director Shona Nichols, Group Marketing Director Capita Press Office 020 7544 3141 Issued by Finsbury Group 020 7251 3801 Morgan Bone Mark Harris Notes to editors: The Capita Group Plc is a 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 public sector and private organisations. With 16,000 people at over 160 UK sites, Capita is quoted on the London Stock Exchange and is a FTSE 100 company with estimated revenues for 2002 of £895 million. In November 2001, Capita was awarded the Management Today Most Admired Business Services Company Award. This information is provided by RNS The company news service from the London Stock Exchange

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