Glasgow City Council selects Serco as partner

18 February 2008

 Glasgow City Council selects Serco as partner for a pioneering joint venture  

Serco Group plc (Serco) today announces that it has been selected by Glasgow
City Council as its partner for a pioneering joint venture valued at around £
265m to Serco over ten years.

Through a strategic joint venture - the first of its kind in Scotland - Glasgow
City Council and Serco will improve services for citizens through joined-up,
efficient and higher quality property and information and communications
technology (ICT) services. As a result Glasgow City Council will save more than
£70 million over the ten years.

Services will be improved by driving innovation - modern, flexible ICT and
property services, reducing city centre office capacity, improving employees'
skills and resources and providing a single point of contact for ICT and
property services. To support delivery of the partnership, 280 council staff
will be seconded or transferred to the joint venture.

The council is developing a broad range of transformational programmes as part
of its strategy to increase efficiency and improve service quality and over
time Serco will develop further proposals to support this strategy.

George Black, Chief Executive of Glasgow City Council said: "The partnership
will bring real benefits to Glasgow's citizens by allowing us to build our
front line services around their needs. We will now move towards developing
community hubs where staff will deliver the services people want as near as
possible to the heart of their local area. As a council we want to find new and
radical ways to deliver value for money services to our customers and this new
company will do just that."

Christopher Hyman, Serco chief executive, said: "We are totally committed to
supporting Glasgow City Council in its ambitious programme to improve the
efficiency and quality of its services. This partnership is a significant step
forward for our Solutions business and we will work with the council to develop
innovative ways to further transform their services."

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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 local government, health, education, home affairs,
science, nuclear, 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

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