Re Contract

Capita Group PLC 16 February 2004 16th February 2004 Capita to Manage Miners' Liability Claims Contract ensures Capita's place as the largest outsourced claims handler across all claims The Capita Group Plc ('Capita') announced today that it is to manage the contract to administer all miners' personal injury liability claims on behalf of the Department of Trade and Industry ('DTI') with respect to certain health conditions caused by working underground in British Coal mines. This is the Government's largest uncapped liability, estimated at £7 billion, with nearly £2 billion having been paid out to date. The contract will run until 31st July 2006. It is estimated that revenues of £125 million will be generated over the term of the contract. Over 1,250 employees will transfer to Capita from Aon the previous supplier, and Capita is paying £8 million in cash to Aon for the underlying contract infrastructure and other assets. Capita was selected, after a competitive process and due diligence, to run the contract which primarily concerns the processing of claims in regard to chronic obstructive pulmonary disease and vibration white finger. Capita's Executive Chairman, Rod Aldridge, commented: 'This announcement builds on the expertise of our team at Capita Insurance Services and establishes the company as the largest employer of claims handlers in the UK. Our role in delivering the contract is to ensure claims are handled effectively and compassionately, whilst maintaining rigorous eligibility procedures. In view of the scale of these liability schemes, Capita's extensive experience of the industry and expert resources position us well to manage this contract and provide flexibility for further additional work. Our focus will be to continue providing an effective service to the people suffering from these diseases.' The service is currently administered from four locations, all of which will transfer to Capita. The main operation is based in Sheffield with further sites in Cardiff, Manchester and Edinburgh, predominantly near to mining communities. Ends Notes to Editors: Following the high-profile court rulings of 1997 and 1998, the liabilities of British Coal were transferred to the DTI on 1st January 1998 under the terms of the Coal Industry Act. The DTI is responsible for running these two major personal injury compensation schemes, representing the largest personal injury schemes in British legal history. More than 410,000 claims have been made by former miners relating to respiratory disease resulting in £974 million being paid in compensation. One hundred and seventy thousand vibration white finger claims have been made, with £923 million paid in compensation. For further information please contact: The Capita Group Plc +44 (0)207 799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Group Marketing Director Press Office +44 (0)870 2400 488 Finsbury +44 (0)207 251 3801 Morgan Bone Mark Harris 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 17,000 employees at more than 200 offices across the UK, Capita is quoted on the London Stock Exchange (CPI.L) with forecasted revenues for 2003 of £1075 million. In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland Sunday Times Business Awards. Capita has won Management Today's Most Admired Support Services Company Award in 2003, for the third year running. Further information on The Capita Group can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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