Re Joint Venture

Serco Group PLC
5 June 2002



Serco Group plc

Joint Venture with Wackenhut Corrections Corporation ('WCC')

On 13 May 2002 Serco Group plc ('Serco') announced that it was considering
exercising its right under the joint venture agreement with WCC to acquire WCC's
50% interest in Premier Custodial Group Limited ('PCG'). Since that announcement
Serco has held discussions with WCC with a view to acquiring the remaining 50%
of PCG. Serco has now exercised its rights under the joint venture agreement to
acquire the shareholding. WCC has notified Serco that it disputes Serco's right
to acquire WCC's 50% interest.

Serco has held 50% of PCG since 1992 during which time PCG has developed a
strong presence in the UK custodial market in the management of prisons, secure
training centres and immigration centres as well as leading the market in the
provision of electronic tagging services. The custodial market continues to
develop strongly.

The intended acquisition will give Serco the opportunity to further develop
PCG's market position, both in the UK and overseas and will provide Serco with
the opportunity to develop synergies with our existing businesses.

The terms of the joint venture agreement provide that on a change of control of
The Wackenhut Corporation, Serco has the option to acquire for cash WCC's 50%
interest in PCG at 90% of fair market value. The terms of the agreement further
provide that fair market value is to be determined by expert valuation and this
determination is binding on both parties. The contractual process to determine
fair market value should take approximately 80 days.

The Board expects the acquisition to be immediately earnings enhancing pre
goodwill amortisation.

In the year ended 31 December 2001 PCG's turnover was £190.5 million and profit
before tax was £12.3 million. The net assets employed in PCG at 31 December 2001
were £21.1 million. As at 31st December 2001, PCG had gross assets of £259.8
million and gross liabilities of £238.7 million including non-recourse debt of
£180.7 million. The non-recourse debt relates to the financing of PFI prisons
and is held by Special Purpose Companies. This debt is offset by contractual
payables from HM Government. Serco's share of PCG's gross assets and liabilities
are included within the share of joint venture assets liabilities shown on the
balance sheet. The acquisition of PCG will result in these assets and
liabilities being fully consolidated by Serco.

Serco will update shareholders in due course, as appropriate.

- Ends -

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

Kevin Johnson          - Media & Public Relations Manager

Notes to Editors:

Premier Custodial Group is a joint venture between Serco and Wackenhut
Corrections Corporation of Florida USA, with the objective of delivering the
requirements of the criminal justice services throughout the United Kingdom.

Since PCG opened Doncaster Prison in June 1994 the group has built up its
reputation for first-class prison management, recognised and endorsed by the
Chief Inspector of Prisons.

PCG now employs over 3,000 people and operate 4 prisons, 1 combined prison and
Youth Offenders Institution, a secure youth training centre and an immigration
centre in the UK. In addition, PCG provides a range of other custodial services
including electronic monitoring of offenders and court escort services.





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