Re Contract

Serco Group plc

Serco selected for RAF Northolt and Uxbridge

Serco Defence and Aerospace ('Serco') today has been selected for the Ministry
of Defence's ('MoD') multi-activity contract at RAF Northolt and Uxbridge.

The contract is valued at almost £55 million over five years eight months, plus
two one-year extension options. It combines two separate contracts, both of
which are currently managed by Serco, and is due to start on 9 August 2004.

Serco provides a number of services at both RAF Northolt and RAF Uxbridge
including aircraft maintenance, calibration, engineering services, supply
support, technical library, technical maintenance, and warehousing/stores.
Serco will also provide maintenance and associated support for the aircraft of
No. 32 (The Royal) Squadron, also known as the Queen's Flight, the Queen's
Colour Squadron, and The Central Band of the RAF.

This award is the latest in a series of successful contracts for its defence
and aerospace business. Serco has recently secured contracts at RAF Cranwell
(including the Multi-Engine Pilot Training Interim Solution), RAF Brize Norton,
and the Waterfront Education and Training Centre at Devonport. Most recently
Serco has secured the Naval Air Command multi-activity contract where, in
addition to retaining our current contract, we were also successful in
obtaining the Fleet Requirements Air Direction Unit (FRADU), BAES Hawk
Operation.

Kevin Beeston, Serco's Executive Chairman commented: 'Serco is maintaining its
track record of renewing over 90% of all re-bids. This is only made possible by
maintaining excellent relations with our customers. Value for money solutions
and our approach to partnership continue to prove business differentiators for
the Group.'

- Ends -

For further information please contact Dominic Cheetham Director of Corporate
Communications, Serco Group plc: T [phone]

Notes to Editors

Serco is one of the world's leading public service companies operating on a
global basis in a diverse range of sectors, including defence, aerospace and
science, public transport and traffic management, health, education, justice
and local government.

More information on the company can be found at www.serco.com