AWE pricing agreed through to 2018

Agreement reached for AWE pricing arrangements through to 2018 11 May 2012 Serco Group plc (Serco), the international service company, announces today that the arrangements for the next pricing period regarding the Atomic Weapons Establishment (AWE) contract have been successfully concluded. The agreement has been reached with the UK Ministry of Defence (MOD) by Serco and its joint venture partners Lockheed Martin and Jacobs Engineering Group Inc. with whom we manage and operate AWE on behalf of the MOD. This is the fourth such pricing period to date since the contract commenced on 1 April 2000. Serco's share of revenue is expected to remain around £300m a year and approximately £1.5bn will be added to our order book. The new arrangements will take effect from 1 April 2013 and run through to 31 March 2018. The earnings and margin rate in the initial years will be similar to those achieved in the initial years of the current pricing period. As reflected in our recently announced 2011 financial results, the contract is delivering value for money for the MOD whilst achieving excellent performance in the quality and timeliness of our programme delivery. Under the agreed arrangements, the joint venture will again be incentivised to save money against the future programme. Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to have successfully agreed this latest pricing period for our AWE contract. Working closely with the Ministry of Defence and our joint venture partners, we are delivering a critical component of national security and providing leading scientific research as well as delivering value for money for the taxpayer." Ends For further information please contact Serco: Stuart Ford, Head of Investor Relations T +44 (0) 208 334 4122 Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4388 Notes to editors AWE plays a crucial role in national nuclear security and the defence of the United Kingdom, by providing and maintaining the warheads for the country's nuclear deterrent. It is a centre of scientific and technological excellence, with some of the most advanced research, design and production facilities in the world. The work at AWE covers the entire life cycle of nuclear warheads; from initial concept, assessment and design, through to component manufacture and assembly, in-service support, and finally decommissioning and disposal. About Serco Serco is a FTSE 100 international service company, which combines commercial know-how with a deep public service ethos. Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public. Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors. More information can be found at www.serco.com

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