Presentation on Transition to IFRS

9 December 2004

                                Serco Group plc                                

                      Presentation on Transition to IFRS                       

Serco Group plc ('Serco' or the 'Group') will today hold a presentation for
analysts and investors on Serco's transition to International Financial
Reporting Standards ('IFRS'). The presentation will provide an overview of the
areas of IFRS which are likely to have an impact on the Group's future
financial reporting.

Separately today, Serco has issued its pre-close statement ahead of the end of
its financial year on 31 December 2004, which confirms that the Group continues
to trade in line with expectations.

Serco's IFRS project team has been working for more than 18 months on the
transition process, assisted by resource from Deloitte & Touche LLP. The
project has Board level sponsorship and a steering committee with
representation from across all functions, ensuring that the transition is
effectively embedded throughout the Group.

The date of transition to IFRS for Serco is 1 January 2004. The Group's first
reported results under IFRS will be for the six months to 30 June 2005 and the
first full year reported under IFRS will be for the 12 months to 31 December
2005.

The Group's analysis of the transition to IFRS is ongoing. In addition, in some
areas the standards are continuing to evolve and further change is expected.
Today's presentation will therefore focus on the qualitative aspects of the
transition to IFRS. Areas the Group will present on include:

  * Employee benefits, including pensions
   
  * Financial instruments
   
  * Business combinations
   
  * Share based payment
   
  * Interests in joint ventures
   
  * Accounting for private finance initiatives
   
The key conclusions from the presentation will be that:

  * The underlying performance of the Group will be unaffected. However, the
    adoption of IFRS will change the reported earnings and net assets of the
    Group.
   
  * The impact on year on year earnings growth after transition is likely to be
    minimal.
   
  * The fair value concept will introduce a degree of volatility principally
    into the balance sheet, largely due to the inclusion of financial
    instruments and actuarial gains and losses on pensions.
   
  * On transition net assets are likely to be reduced largely through including
    the pension scheme deficit in the balance sheet. The principal areas of
    impact on transition in the income statement are likely to be in the areas
    of share based payment and the treatment of goodwill.
   
  * The introduction of IFRS will result in certain changes in disclosure.
   
A copy of the presentation slides will be made available on Serco's website (
www.serco.com).

                                   - Ends -                                    

For further information please contact Serco Group plc on [phone]:

Dominic Cheetham, Corporate Communications Director

Richard Hollins, Head of Investor Relations

Notes to editors:

  * Serco is one of the world's leading service companies operating on a global
    basis in a diverse range of sectors, including transport and traffic
    management, justice, defence, aerospace, science, heath, education and
    local government.
   
  * In December 2004 Management Today magazine named Serco as Britain's most
    admired support services company and sixth most admired British company
    overall.