LTPA firm price agreement

QinetiQ Group plc
03 March 2008

QinetiQ and MOD sign £951m pricing agreement for test and evaluation and
training support services over the next five years


QinetiQ and the MOD have signed a firm price agreement confirming price, volume
and availability for the Long Term Partnering Agreement (LTPA) for Test and
Evaluation (T&E) and Training Support services for the next five years through
to March 2013. The MOD will pay £951m across the second five year term (having
paid £964m for the first five year period).


'We needed to maintain sovereign capabilities but also reduce overall costs and
this ongoing partnering arrangement with QinetiQ allows us to achieve this,'
stated MOD Weapons Commercial Director, Robert Bellis.  'Over the first five
years we've not only retained access to the necessary facilities to ensure front
line capability is maintained but we've done so at a much reduced cost. The LTPA
has also enabled QinetiQ to invest in the facilities thereby providing MOD with
an improved service for the agreed firm price.'


The LTPA contract was first signed in February 2003 and is still one of the
largest of its kind in the UK.  Valued at £5.6bn over 25-years to 2028, the LTPA
includes five-yearly financial reviews and a 25 year extension option.


Under this contract QinetiQ manages 18 core MOD owned sites and is responsible
for the provision of Non Tasking Services.  These include delivering a T&E and
Training Support capability, maintaining associated equipment, land and
buildings, plus delivering an investment programme to ensure that the capability
is maintained and developed to meet MOD evolving needs.


'The agreement of the firm price for the next period is recognition of QinetiQ's
ability to both deliver value for money to the MOD and maintain many of the
critical facilities it needs', added Mary Carver, MD of QinetiQ's iX Managed
Services sector.


Further Enquiries:

QinetiQ Group plc

Adrian Colman, Investor Relations              Tel: [phone]

David Bishop, Media Relations                  Tel: [phone]








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