Re Contract

Capita Group PLC
13 December 2001


13 December 2001


                              THE CAPITA GROUP PLC

BBC selects Capita as preferred supplier to deliver the TV Licensing contract


Summary Highlights


-    Capita selected as preferred supplier to deliver TV Licensing service on
     behalf of the BBC.

-    Contract worth circ. £500 million over 10 years - representing the largest 
     ever contract for Capita to date.

-    Capita to deliver and enhance:

     o    multi-contact customer service centres - handling telephone, 
          internet, fax and e-mail contacts;

     o    IT infrastructure and administration services including a new customer
          relationships management system;

     o    enquiry and collection field force operations, including the latest   
          palm-top field technology.

-     Capita plans to:

      o     retain core service in Bristol but relocate to new, improved 
            premises;

      o     develop a new customer multi-contact centre in Blackburn with       
            Darwen, creating 230 new jobs 


Capita has been selected by the BBC as the preferred supplier to administer TV
Licensing. In a contract expected to be worth circa £500 million over 10
years, Capita will be responsible for enhancing and delivering contact
centres, associated administration and field force operations. The existing
call centre and field operations, including approximately 1500 staff, are
planned to transfer to Capita in July 2002.


The contract plays to Capita's strengths and experience of transitioning and
transforming complex, multi-disciplinary and large scale administrative
activities that incorporate multi-channel contact centres, back office
administration, revenue collection and IT services within a demanding public
service environment. Capita will be working in partnership with AMV who has
been selected as preferred supplier to deliver the integral marketing and
communications activity.



Zarin Patel, BBC Head of Revenue Management, said:

'We are confident that Capita and AMV are the leaders in their fields and
together will provide the best service for both the BBC and licence fee
payers.  Both companies demonstrated throughout the bid process the ability to
be innovative and to work in partnership with the BBC.'



Rod Aldridge, Executive Chairman of the Capita Group Plc, commented:

'We are delighted to have been selected as preferred partner to administer TV
Licensing for the BBC.  We see extensive opportunities for innovative use of
new technologies and new ways of working to enhance the service and increase
the contribution to the BBC.  We look forward to continuing to develop our
partnership with the BBC, for whom we currently deliver front-line customer
information services, and to working closely with AMV to the benefit of all
parties and ultimately to all viewers and listeners of the BBC.'


Final negotiations are now on-going with the intention of finalising contracts
as soon as possible. The BBC stressed that it is business as usual for TV
Licensing activity until the new contracts start next year. Further
announcements on the new contract will be made nearer the time.



                                    -ends-



For further information, please contact:


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

Capita Press Office                                        020 7544 3141

BBC Press Office                                           020 8576 1865

Issued by Finsbury                                         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 over 13,000 people at over 160 UK
sites, Capita is quoted on the London Stock Exchange with forecast revenues
for 2001 of £690 million. Capita became a FTSE 100 company in March 2000.  In
November 2001 Capita was awarded the Management Today Most Admired Business
Services Company Award.


Capita currently delivers a unique customer contact service operation for the
BBC.  In 1998 Capita was awarded a 5-year contract to set up and administer
the BBC Information Service.  Capita is a frontline BBC partner handling all
unsolicited enquiries from viewers and listeners seeking further information
or commenting on broadcast material and handles solicited contacts generated
by TV and radio programmes.


Recent contract wins include the creation and administration of the new
Criminal Records Bureau certification service for the Home Office, the
infrastructure set up, management and development of the new national
Connexions Card service for 16-19 year olds for the Department for Education
and Skills (DfES) and the administration and infrastructure transformation of
Abbey National's general insurance operations.