Atomic Weapons Contract Awarded to Joint Venture

Serco Group PLC
1 December 1999

                       Serco Group plc announces that:                        
                                                                              
                            AWE Management Limited                            
                           is Awarded the Contract                            
                       for the Management and Operation                       
                     of the Atomic Weapons Establishment                      

AWE Management Limited ('AWEML') has been awarded a contract, by the Ministry
of Defence ('MoD'), for the management and operation of the Atomic Weapons
Establishment ('AWE').  AWE is the United Kingdom Government's nuclear weapons
research and development centre, and has responsibility for the nation's
nuclear weapons stockpile.  The contract will begin on 1 April 2000, with a
transition period commencing in December 1999.

The management and operation contract will be for the provision of all
services related to facilities management, waste and environmental management,
manufacture and stewardship, and associated site support.  The continuing
development of science and research programmes will also form part of the
contract requirements.

AWEML is an equal joint venture between Serco Limited, a wholly owned
subsidiary of Serco Group plc ('Serco'), Lockheed Martin UK Limited, a wholly
owned subsidiary of Lockheed Martin Corporation ('Lockheed'), and British
Nuclear Fuels plc ('BNFL').  

The initial contract period will be for 10 years at a value of approximately
£2.2 billion, incorporating an enabling agreement to move subsequently to a 25
year term.  The contract employs over 4,000 staff.

Richard White, Executive Chairman, Serco Group plc, stated:-

'We are delighted to have been awarded this prestigious contract, with our
partners, Lockheed Martin and BNFL.  The three companies have unrivalled
expertise and resources from which to draw in managing the contract and have a
common view that safety is paramount.  The award builds on our existing
contracts with UK science based organisations, such as the National Physical
Laboratory.  We look forward to welcoming and working with the staff at AWE.'

For Further Information Contact:

Richard White, Executive Chairman, Serco Group plc   Tel:  [phone]
Kevin Beeston, Chief Executive, Serco Group plc      Tel:  [phone]
Christopher Hyman, Finance Director, Serco Group plc Tel:  [phone]