Contract Win

Serco Group PLC
26 February 2002

            Serco Group, as part of Paradigm, selected for Skynet 5
                      - Serco contract worth £220 million

The UK Ministry of Defence ('MoD') has today announced the selection of Paradigm
Secure Communications ('Paradigm') as its preferred bidder for the Skynet 5
contract.  Under this new arrangement, Paradigm will deliver secure global
military satellite communications to the UK armed forces, within a Private
Finance Initiative ('PFI').

As part of the team, Serco Group ('Serco') will play an important role in this
key government programme.  The contract is worth around £2 billion over fifteen
years to the team as a whole, and in the region of £220 million to Serco, in the
same period.  The contract is expected to be signed in the latter part of 2002
with service delivery beginning in March 2003.

Serco, which has been an integral part of the Paradigm team for Skynet 5 since
the award of the PFI Study Contract, is working alongside the industry leaders
in its field to deliver this secure global military satellite communications
service.  As part of this long-term contract Serco will provide network and
facilities management services, including spacecraft and network operations,
network maintenance, training, supply management and through-life buildings and
facilities maintenance.

By choosing this highly flexible and cost effective service provision solution,
the MoD will retain guaranteed, secure communications whenever and wherever
required, eliminating the risks of managing the space system and benefiting from
evolving technologies and increasing capacity.
Commenting on the award, Kevin Beeston - Serco's Chief Executive said:

'By making Paradigm preferred bidder for this very important and ground breaking
service provision contract the MoD are acknowledging the quality and technical
excellence in one of the strongest teams that can ever have come together for a
project of this nature.

Involvement in Skynet 5 further adds to Serco's expanding range of services with
the UK and overseas governments and specifically with the Ministry of Defence in
critical and complex systems.  This contract award will contribute significantly
to Serco's already highly visible order book.'


                                    - Ends -

For further information please contact Serco Group plc:
T [phone]

Kevin Beeston                           Chief Executive
Ben Woodford                            Corporate Communications Director

Notes to Editors

  • The Skynet 5 contract calls for Paradigm to deliver military satellite
    communications initially through the transfer of ownership and operation of
    the existing Skynet 4 infrastructure and then by incorporating new Skynet 5
    satellites and new and upgraded associated ground segment from the middle of
    this decade

  • Paradigm Secure Communications, in addition to Serco, includes Astrium,
    Europe's largest space company, Logica, General Dynamics Decision Systems
    (formerly Motorola IISG), Cogent DSN, BAE SYSTEMS, Cable & Wireless and SEA,
    with support from Stratos for Inmarsat services and Global Crossing for
    leased line communications

  • Supported by the UK Defence Export Services Organisation (DESO) and within
    a gain-sharing framework with the MoD, Paradigm will offer the same levels
    of service and security to other governments and organisations e.g. NATO,
    some of whom due to the prohibitive costs, may previously have been unable
    to acquire these capabilities

  • Serco Group is an international provider of management services to
    government and industry. The company covers a wide range of activities, from
    controlling satellites and operating computer networks for the European
    Space Agency, to managing and operating the Docklands Light Railway where
    Serco was recently voted National Rail Operator of the year. The company
    employs over 32,500 staff in more than 35 countries

  • Serco has provided IT and scientific services to the European Space Agency
    and the MoD for many years and is one of very few companies that can
    demonstrate involvement across the complete spectrum of support service
    requirement in the industry.  Serco is involved in scientific studies,
    spacecraft engineering, IT, project management and support services; the
    company has military customers stretching back 40 years and retains 90% of
    its defence contracts on re-bid

  • More information on Serco can be found at www.serco.com

  • More information on Paradigm can be found at www.paradigmsecure.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange