Re Contract

Serco signs contract for Belmarsh West prison valued at £415m

5 July 2010

Serco Group plc (Serco), the international service company, announces that its
consortium has signed a contract with the Ministry of Justice to provide and
operate a new prison at Belmarsh West, London. The contract has a value to
Serco of approximately £415m, and will run for 26½ years.

Serco had previously announced its selection, in June 2009, as the preferred
bidder to provide and operate two new prisons at Belmarsh West, London and
Maghull, Liverpool. It is intended that the contract to provide and operate the
prison at Maghull will be signed later this year.

Serco will operate Belmarsh West, a local prison, under a Design, Construct,
Manage and Finance contract. The prison, which will be built to Category B
standards by Serco's construction partner Skanska, will accommodate 900 adult
male prisoners. Construction works will beginimmediately, with completion
expected in the first half of 2012. Equity and debt finance has been secured
from third parties.

This is the first prison contract to be awarded in the UK to an alliance of the
private and voluntary sectors. The prison is designed to be highly efficient
and, as a local prison with a high remand population, Serco's focus will be to
minimise the dislocation that short-term imprisonment can cause. Building on
its innovative and successful alliance with leading voluntary sector partners,
Turning Point and Catch22, Serco will deploy tried and tested methodologies and
best-in-class technology to create an environment that most effectively and
efficiently prepares those in our care for release. In conjunction with other
providers Serco will also support the effective delivery of prison healthcare
and other services, to ensure a safe, secure and decent environment for those
in our care.

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

"Serco has a strong track record internationally of providing high quality
service in the management of prisons, focused on cost effective care and
successful rehabilitation. I am delighted that this high level of performance
and innovation has been recognised with the award of this contract for Belmarsh
West by the Ministry of Justice. Our consortium comprises some outstanding
delivery partners, including Skanska, with whom we have worked since 1994 and
our third sector partners Catch22 and Turning Point who are renowned for their
rehabilitation and resettlement solutions."

Ends

Design images of Belmarsh West are available on request.

For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

Marcus De Ville, Head of Media Relations

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

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 around the world 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, transport, welfare to work and
the commercial sectors.

More information can be found at www.serco.com

About the Alliance

Turning Point and Catch 22 have entered into an alliance with Serco to deliver
resettlement services for people in prison.  Together, Turning Point and Catch
22 have extensive experience in providing support services to young people and
people with complex needs. Turning Point is the UK's leading health and social
care social business, providing services for people with complex needs,
including those affected by drug and alcohol misuse, mental health problems or
those with a learning disability.  Catch 22 works with 37,000 young people in
more than 150 places in England, Wales and Northern Ireland, helping young
people to find ways out of tough situations by building strong relationships
with them and tackling the problems they face through specialist projects.

About Serco in Home Affairs

This contract represents a further extension of Serco's home affairs business,
which is developing strongly. Serco manages four adult prisons in the UK, and
the capacity of two of these has recently been increased. Serco also manages a
Young Offenders Institution and a Secure Training Centre for young people, as
well as providing electronic monitoring and court escort and custody services.

Serco has also successfully transferred its offender management capabilities
from the UK into other geographies, notably Australia, where Serco recently won
the Operator and Service Excellence Award at Infrastructure Partnerships,
Australia's prestigious National Infrastructure Awards, which recognises the
high standard of service Serco is providing at Acacia Prison. Serco now manages
two prisons in Australia and was awarded in 2009 a contract to transform
Australia's immigration centres.

Financial Partners

Debt financing is being provided by Bank of Ireland, Barclays Corporate, Helaba
(Landesbank Hessen-Thüringen GZ, London Branch) and The Royal Bank of Scotland
PLC. Barclays Infrastructure Funds is the sole provider of the equity finance.