DTR Statement from MOD

QinetiQ Group plc
25 October 2007


QinetiQ Group plc
25 October 2007

Ministry of Defence written statement on Defence Training Rationalisation (DTR)
programme

Further to its trading statement of 28 September 2007, QinetiQ Group plc
('QinetiQ'), the international defence and security technology company, draws
attention to the following written statement on the Defence Training
Rationalisation (DTR) programme, issued by the Ministry of Defence today.

'This statement updates the House on the Defence Training Rationalisation
Programme following the announcement made in January this year (17 Jan 2007:
Column 789).

'We continue to make progress on Package 1, which aims to deliver training for
Engineering and Communications and Information Systems.  We have now let a risk
reduction contract with Metrix which seeks to increase confidence in our ability
to amend training courses quickly and efficiently over the life of the main
contract in response to changes in training needs.  It is anticipated that we
will be in a position to commit to the final developmental phase of the Project
in the spring of next year with a view to signing the main contract within a
further year. Construction at the St Athan site would then start in 2009, with
the aim of completing the final phase by 2013.

'The work to explore possible synergies and economies of scale across the
programme as a whole has concluded that there are insufficient efficiencies to
move forward on this basis.  We therefore continue to consider a range of
options for Package 2, which aims to provide training for Logistics and
Personnel Administration, Police and Guarding, Security, Languages, Intelligence
and Photography.  These options vary from adaptations to Metrix' original PFI
proposals through to a full conventional procurement.  The work to develop an
affordable project will continue to focus on how best to improve our
accommodation and training facilities, and meet our commitments following the
review by Nicholas Blake QC to improve the support, welfare and wellbeing of our
trainees.

'We continue to manage the implications for our people sensitively and in full
consultation with Trades Unions and staff.  For Package 1, our civilian staff in
scope will continue to be required to transfer to the new Partner, although no
moves will take place before 2011.  For Package 2, training will continue to be
delivered at the Package 2 sites under current arrangements for at least the
foreseeable future.  We now plan to take forward more detailed negotiations with
the Metrix consortium to press ahead with Package 1.   The work on Package 2
will be conducted in parallel and a further update on both packages will be
provided next year.'

                                    - ends -

For further information please contact:

Metrix press office                                     [phone]

Adrian Colman, QinetiQ Investor Relations                (d) [phone]

                                                          (m) [phone]

Nicky Louth-Davies
Head of Media & Corporate Affairs
QinetiQ
t: 01252 392809
m: 07795 290593
www.QinetiQ.com




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