Acquisition

SERCO GROUP PLC
6 October 1999


       SERCO GROUP PLC ('SERCO') ANNOUNCES ACQUISITION OF THE REMAINING 
               SHARES OF GREAT SOUTHERN RAILWAY LIMITED ('GSR')

Serco, through its subsidiary Serco Asia Pacific Pty Limited, has agreed to
acquire the remaining 50.8% of shares in GSR from the other GSR shareholders:
GB Railways Group Plc; RailAmerica Inc; Belike Nominees Pty Limited; Colonial
Investment Services Limited; and, G13 Pty Limited for A$18.9 million
(approximately £7.6 million).  GSR consists of the passenger rail assets
associated with three interstate passenger rail services in Australia, which are
principally used for leisure travel.  The assets consist of a fleet of
approximately 186 passenger carriages and motorail wagons.

GSR made an operating loss of A$5.0 million (approximately £2.0 million) on
revenues of A$61.7 million (approximately £24.7 million) in the year to 30
September 1999.  The performance of GSR since acquisition in 1997 has been
constantly improving and Serco anticipates GSR being profitable in 2000, with
continued growth thereafter.  The net liabilities being assumed in GSR are
estimated to be A£2.5 million (approximately £1.0 million)

Serco has agreed to acquire the remaining 50.8% of the issued share capital and
Rail Loan Notes of GSR (4.6 million GSR Ordinary Shares of A$1 each and 4.6
million Stapled Rail Loan Notes of A$2 each) by paying A$10.4 million
(approximately £4.2 million) cash by 15 October 1999 with a further A$8.5
million (approximately £3.4 million) payable on 15 March 2000.  Serco is
purchasing the Ordinary Shares and Rail Loan Notes using its internal resources.

Richard White, Executive Chairman, stated:  'The acquisition positions the Group
well for future government privatisations by demonstrating Serco's ability and
commitment to creating commercially successful enterprises with growth
opportunities for the future.

For further information please contact:

Richard White, Executive Chairman                           [phone]
Christopher Hyman, Finance Director                         [phone]