Acquisition of shares in Joint Venture

Serco Group plc

Acquisition of Shares in Joint Venture

3 October 2005

Serco Group plc ('Serco') today announces that it has purchased Equion
Limited's 50% share of Defence Management Holdings Limited ('DMHL'), for
consideration of £5.9m. DMHL was formerly a 50:50 joint venture between Serco
and Equion. DMHL owns Defence Management Watchfield Limited, the special
purpose company for the Joint Services Command and Staff College ('JSCSC')
private finance initiative.

The purchase reflects Serco's commitment to long term operating relationships
with its clients, in this case the Ministry of Defence ('MoD'). Serco and the
MoD are creating a long term partnership at the MoD's Shrivenham site, through
both the JSCSC contract and the recently announced Defence Academy Campus
Integrator contract. Serco's contract to operate the JSCSC runs for a further
23 years.

                                   - Ends -                                    

For further information please contact Serco: [phone]

Dominic Cheetham, Corporate Communications Director

Richard Hollins, Head of Investor Relations

Notes to editors

Serco is a leading international service company, operating in a diverse range
of sectors, including defence, transport, science, health, home affairs, IT
services, education, and local government. More information can be found at 
www.serco.com.

Serco is the largest defence service contractor in the UK, with over 40 years
experience of providing integrated services to complex defence and scientific
installations.

On 5 June 1998 the MoD signed a contract with DMWL to design, build, finance
and operate the JSCSC at Shrivenham. It was the first private finance
initiative ('PFI') of its type in the defence sector combining education,
estates (including housing), training support services and mess accommodation
support services. The PFI contract is for 30 years and provides a centre for
training staff officers of all three armed services.

Equion Limited is a wholly owned subsidiary of John Laing Plc, focusing on
accommodation projects. John Laing is one of the UK's leading investors,
developers and operators of privately financed, public sector infrastructure
projects such as roads, railways, hospitals and schools. It is the only UK
listed company whose core business is focused entirely upon the development of
PFI/PPP projects and operations.