Re Contract

Capita Group PLC
22 March 2007

22 March 2007

         CAPITA CHOSEN AS PREFERRED BIDDER BY SOUTHAMPTON CITY COUNCIL 

         Ten year public/private sector strategic partnership announced


The Capita Group Plc ('Capita') announces that it has been selected by
Southampton City Council as preferred bidder to develop a 10 year strategic
partnership valued at approximately £290 million.

Capita will deliver a wide range of services including customer services, IT,
property and the administration of HR, payroll, revenues and benefits, and
procurement. Final negotiations are currently in progress with the decision to
proceed due to be made by Councillors in July, and the contract expected to
commence on the 1 October 2007.

Citizens and businesses will benefit from the development of a contact centre
and a 'one stop shop', which will become the first point of contact for all
Council services. Approximately 600 Council employees will TUPE transfer to
Capita and support the delivery of these key services as part of the strategic
partnership.

Paul Pindar, Chief Executive of Capita, said: 'We look forward to working with
the Council to ensure that the local community truly benefits from this
partnership. Our extensive experience of transforming public services combined
with the Council employees' expert knowledge of the City will provide a solid
platform to deliver enhanced services. Our role in supporting local government
continues to grow strongly.'


                                     -Ends-

For further information please contact:

The Capita Group Plc [phone]

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

Press Office [phone]

The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass business
process outsourcing, (BPO), customer services, administration and support, human
resources, ICT, property consultancy, finance & treasury and consultancy
delivered to both public sector and private organisations. With 27,800 employees
at more than 250 offices across the UK, Channel Islands, Ireland and India,
Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of
the FTSE100 with revenues for 2006 of £1,739 million.

Further information on The Capita Group Plc can be found at:  www.capita.co.uk




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