Disposal

Serco agrees sale of Australian and New Zealand facilities management contracts

Following a review of its Asia Pacific business, Serco Group plc ('Serco')
today announces the disposal of certain of its contracts in Australia and New
Zealand.

Serco has been developing its business in the Asia Pacific region over a number
of years and has built a good reputation with government, with a particularly
strong focus in the areas of defence and transport. Serco's intention is to
concentrate on those areas where it has had greatest success, and where it sees
best potential for growth.

There are 52 small to medium-sized contracts being transferred comprising a
broad range of facilities, property and asset management activities. The
turnover of these contracts in 2003 was £40m. Agreements have been signed with
separate local trade purchasers in respect of the Australian contracts and the
New Zealand contracts. The agreements are subject to the consent of various
customers, but the transactions are expected to complete in the next few
months.

The contracts will be disposed of for proceeds (including the transfer of
indebtedness) of £7.5m. After costs, the transaction is expected to be earnings
neutral in 2004 whilst contributing to increased profitability going forward.

The transfer of these contracts allows Serco to clearly focus on its commitment
to the Australian and New Zealand markets in the defence and transport sectors.
It further reinforces Serco's intention to devote management resources to
building its business in those sectors that offer greatest potential for growth
and profitability.

Commenting on the transactions, Serco's Chief Executive, Christopher Hyman
said:

'As discussed with our Preliminary Results, we are intent on ensuring that our
focus remains on those market areas with the best potential for growth and that
we remove ourselves from less profitable areas. We have concluded a review of
our Asia Pacific business and, following these contract disposals, now look
forward to the further growth and development of our business in the region.'

                                   - Ends -                                    

For further information please contact:

Serco Group plc

T: [phone]

Kevin Johnson Head of Media & Public Relations