Re Contract

Capita Group PLC
8 May 2001

                                                                    8 May 2001



  Capita Selected To Develop And Deliver The Connexions Card Service By DfEE


The Department for Education and Employment ('DfEE') announced today that it
has selected the Capita Group Plc ('Capita') as preferred bidder to develop
and deliver the Connexions Card service to the community of 16-19 year olds
across England.  The public/private partnership will be based on an initial
7-year contract worth in excess of £100 million, with an option to extend for
3 years.


The Connexions Card is an exciting and innovative project aimed at encouraging
young people to stay on in learning post 16, and achieve a worthwhile
qualification by the age of 19. It will be rolled out initially in one region
from Autumn of this year and then progressively so that it will be available
across England from Autumn 2002.


By deploying leading edge smart card technology and developing a wide range of
commercial relationships with both the private and public sector, the
Connexions Card will provide a powerful incentive to young people to stay in
learning.



The Connexions Card will be developed to:



*         offer a range of discounts and rewards: reduced costs of access to
the Internet, travel, books and equipment, lifestyle and leisure facilities;



*         be an electronic key to personal information;



*         be used for enrolment and attendance monitoring;



*         assist in the validation of education maintenance allowance payment.



The service will encompass on-line services support for young people including
information, advice and guidance.

Rod Aldridge, Executive Chairman of the Capita Group commented:



'Capita is thrilled to have been selected to deliver this important new
service for young people.  Capita has built a strong reputation for developing
and implementing modern, innovative service solutions.  The combination of
Capita's core skill of professional support services, our extensive
understanding of the Education sector and established regional infrastructure
of business centres ideally positions us to successfully deliver this service.



'It is a truly joined-up service linking central government departments
including the DfEE, Department of the Environment, Transport and the Regions,
Department of Culture, Media and Sport, and the Cabinet Office, with local
government and the private sector to maximise the benefits available to all
young people committing to further learning.  The Connexions Card is a key
element of the government's drive to develop a culture of lifelong learning.
For Capita, it opens up extensive new market opportunities and builds
relationships across existing and new sectors.'



The core service will be developed through the partnership and, in conjunction
with the private sector, additional value added services will be developed
that benefit young people and generate further revenues above the contract
value, significantly benefiting both the taxpayer  and Capita.



The project which is one of the largest smart card roll-outs in Europe to date
will support up to 2.4 million young people in a way that is personalised for
each individual. Capita will utilise proven, flexible smart card technology
and will work with a number of expert partners to deliver this new service.



                                    -Ends-



For further information:


The Capita Group Plc                                      020 7799 1525

Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Press Office                                              020 7544 3141

DfEE
Matthew Lumby, Press Office                               020 79255893

Issued by

Hogarth Partnership, John Olsen/James Longfield           020 7357 9477



Notes to Editors



The Capita Group Plc



Capita 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 11,000 people at over 120 UK sites, Capita
is quoted on the London Stock Exchange with a market capitalisation of
approximately £3 billion.  Capita became a FTSE 100 company in March 2000.
Capita established and delivers the Individual Learning Accounts' service for
the DfEE.  The DfEE announced last week that the service was 'a success story'
with their commitment to reach one million ILAs being met a year early. Capita
is presently implementing the Disclosure service for the Criminal Records
Bureau.



Education Services - Capita provides services to 156 LEAs and 22,000 schools -
software development, implementation and support for schools and LEA
administrative functions; assessment, monitoring and evaluation and curriculum
development advice; NGFL services; staff development programmes; ICT-based
systems for providing information to students and parents; ICT support to
schools; bursary and property services for schools; curriculum and related
consultancy; strategic education services for LEAs and schools; DfEE
intervention consultancy and is on the DfEE framework for intervention managed
services.



For more information, visit our website: www.capita.co.uk