Preferred Bidder on New Zealand Prison Contract

Serco selected as preferred bidder for Prison Contract in New Zealand valued at
approximately NZ$400m

14 December 2010

Serco Group plc (Serco), the international service company, announces today
that it has been selected as preferred bidder for the Prison Management
Contract for the Mt Eden and Auckland Central Remand Centre (ACRP) prison in
Auckland, New Zealand.

The ten-year contract, which is due to be signed in early 2011, is valued at
around NZ$400m (approximately £190m).  It will commence operation fully by
August 2011 and include: prison custodial management; security; prisoner
welfare, rehabilitation and reintegration programmes and activities;
infrastructure management; and logistics.

The prison is a multi-building facility that will accommodate 966 male
prisoners, including both remand and sentenced prisoners, delivering a critical
central hub for the Northern Region of the New Zealand Department of
Corrections. The prison represents an essential facility for New Zealand's
largest city, Auckland.

Under the contract, Serco will deliver prisoner rehabilitation and
reintegration programmes to reduce the impact of reoffending, establish units
to reduce risks for newly arrived remand prisoners, and will establish a Māori
Unit for the accommodation of suitable young Māori men to support our strong
emphasis on addressing specific cultural needs of Māori prisoners.

Serco has been successfully delivering services to governments across the world
for almost fifty years. We have steadily built our position in the southern
hemisphere's justice sector since commencing at Acacia Prison in Western
Australia in 2006 and then at Borallon Correctional Centre in Queensland,
Australia in 2008.

Christopher Hyman, Chief Executive of Serco Group plc, said:

"We welcome the opportunity to partner with the New Zealand Government to
realise the full potential of the Auckland prison particularly through our
focus on reducing re-offending. Serco's solution will meet the Government's,
the Department's and key stakeholder's needs, especially Māori and their whānau
and will deliver real value for money while maintaining the highest levels of
safety and security. This contract will further strengthen our international
platform from which we continue to deliver essential services for our
customers."

- Ends -

For further information please contact Serco:

Jill Sherratt, Interim Head of Investor Relations T [phone]

Dominic Cheetham, Director of Corporate Communications T [phone]

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

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