Cancellation of Leicester Pathway PFI Plan

Cancellation of Leicester Pathway PFI Plan

20 July 2007

Serco Group plc (Serco) is disappointed to note today's announcement by the
University Hospitals of Leicester NHS Trust that it is not to proceed with its
private finance initiative plan to develop hospital services at its three
sites.

Triskelion Healthcare Ltd, a joint venture between John Laing plc, Laing
O'Rourke Ltd and Serco, was appointed preferred bidder for this programme in
December 2004. Following a strategic review of major health PFI projects in
2006, the budget for the project was reduced. It has not been possible to
deliver the required scope of the project within these new parameters.

Further to Serco's trading update on 27 June 2007, it confirms that it
continues to trade strongly and is confident of performing in line with
expectations for the year.

End

Notes to Editors

Serco is an international service company which combines commercial know-how
with a deep public service ethos.

Serco improves services by managing people, processes, technology and assets
more effectively in the health, education, home affairs, local government,
science, technology, defence, transport and commercial sectors, in 37
countries.

Serco advises policy makers, designs innovative solutions, integrates systems
and delivers to the public. More information can be found at www.serco.com.

For further information please contact Serco:

T [phone]

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

For further details contact:

Serco Group plc, Palm Court, 4 Heron Square, Richmond, Surrey TW9 1EW, United
Kingdom

T [phone] F [phone] www.serco.com