NHS support services strategic partnership

Serco signs NHS support services strategic partnership

16 April 2012

Serco Group plc (Serco), the international service company, announces today
that it has signed the agreement to operate, and has begun to operate, the
Anglia Support Partnership (ASP). ASP becomes Serco's first shared services
proposition in the emerging market for middle and back office support to the UK
health sector. The annual revenue to Serco of the current contracts is
approximately £30m, equivalent to an initial total contract value of £120m over
an average of four years.

Cambridgeshire and Peterborough NHS Foundation Trust (CPFT), together with a
further five partnering NHS organisations, has operated ASP to date. There are
around 65 contracts for the provision of support services to the Trust and
partners, as well as to around 50 other public and private organisations. The
support services provided currently include: operational and specialist IT;
finance operations; employment services; contracts management; procurement;
primary care support services; occupational health; risk management; catering;
and estates and property.

A new four-year framework agreement permits the call-off of additional services
including: commissioning advice and related support services; cost reduction,
efficiency advice and consultancy services; and patient administration. The
framework enables, amongst others, all NHS organisations in the new Midlands
and East Strategic Health Authority to access services equivalent to around 25%
of total NHS spend.

ASP currently employs around 620 members of staff who will transfer as a
consequence. As part of establishing the strategic partnership, Serco's payment
to the partners, which includes acquiring the assets of ASP, totals
approximately £9m in 2012.

Dr Attila Vegh, Chief Executive of CPFT, said: "We consider Serco to be the
ideal strategic partner and one that can offer the investment that's vital to
keep ASP's services at the cutting edge. Capitalising on the strengths and
track record of ASP, we are looking forward to seeing Serco modernise systems
and invest in infrastructure, while seizing other opportunities for growing the
business. This allows CPFT to concentrate on delivering high-quality health and
social care that promotes well-being and independence and which we are proud to
recommend to our families and communities."

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to
be chosen to operate the Anglia Support Partnership. This adds a further
strategic partnership to our growing health support services and BPO
operations. Under the ASP framework, Serco will now be able to address much of
the sizeable NHS `shared services' market, offering member organisations both
improvements in service quality and substantial cost savings. We are combining
our breadth of skills and ability to transform public services to build a
leading health platform, and this represents a significant milestone and early
success for our newly created Global Services division."

Ends

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Marcus De Ville, Head of Media Relations T [phone]

Notes to editors

In the United Kingdom, Serco provides services in partnership with the National
Health Service (NHS) and other health and social care organisations in a range
of primary and community settings. For example, for Anglia Support Partnership,
Serco would draw on its healthcare expertise in operation at Norfolk and
Norwich University Hospitals NHS Foundation Trust, NHS Forth Valley Acute
Hospital, Wishaw General Hospital, and Guy's and St Thomas' Hospital NHS
Foundation Trust.

Serco's other UK health-related operations include: GSTS Pathology, our joint
venture that is transforming pathology services by combining the clinical and
scientific skills of hospital trusts with the service and business experience
of Serco; a leading provider of Occupational Health, supporting the health and
well-being of over 450,000 employees nationwide in the public, private and
voluntary sectors; the leading independent provider of Custodial Health
services; and a provider of Unscheduled Care services to ensure that people
have reliable access to appropriate medical assistance outside normal working
hours.

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