Pre-Close Trading Update

On course for another strong year

27 June 2007

Ahead of the end of its financial half year on 30 June 2007 and its pre-close
meetings with analysts, Serco Group plc (Serco) today releases the following
update on current trading:

Serco has continued to win significant amounts of new business and we remain
confident of performing in line with expectations for the year. So far in 2007
we have signed or been appointed preferred bidder for contracts valued at
around £2.2bn.

Since our AGM update on 4 May 2007, we have signed and commenced a five-year, £
50m contract with the Ministry of Defence to provide services at the UK Armed
Forces estate facilities in Gibraltar. We have also signed and begun contracts
to provide operational management to United Arab Emirates University, valued at
around £70m over ten years, and to deliver property management and support
services to State Street Bank, valued at around £50m over five years.

These and other wins this year give us strong momentum going into the second
half of the year and will accelerate our revenue growth, which as expected
should be around 9% in the first half, underpinning our confidence of
delivering double-digit growth for the full year.

In addition to these wins, we signed a contract to provide support services to
the new NHS Forth Valley Acute Hospital, for which we were appointed preferred
bidder in 2006. The contract, which will begin in mid-2009, is valued at around
£450m over 30 years.

Serco was also appointed preferred bidder to operate and maintain the Dubai
Metro. The contract is valued at more than £400m over 12.5 years, with
operations due to commence in September 2009. And the Royal Navy appointed
Serco as preferred bidder for a ten-year, £70m contract to provide aviation,
engineering and aircraft support services.

Serco's markets continue to grow and our combination of public service ethos
and commercial know-how means we are ideally positioned to support our
customers. At the same time, our ongoing focus on managing our contract
portfolio, bidding selectively and enhancing efficiency is enabling us to build
on the margin expansion we achieved last year. We remain confident of
delivering double-digit growth for the foreseeable future and further
increasing margins.

Serco will release its interim results on 30 August 2007.

                                     Ends                                      

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: [phone]

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications