Serco appointed preferred bidder for DLR

22 November 2005

Serco appointed preferred bidder for £400m Docklands Light Railway service

Serco Group plc ('Serco') today announces that it has been appointed preferred
bidder to operate and maintain the Docklands Light Railway ('DLR') in London.

The contract will run for seven years and may be extended for a further two
years, subject to performance. The contract is valued at around £400m to Serco
over the whole nine years. Final discussions will now start for the new
contract which is due to run from April 2006.

The contract incorporates enhancements for passengers, including the
introduction of three car trains and new services to Woolwich Arsenal and
Stratford International.

Serco has operated the DLR since 1997, winning National Rail Awards for six
consecutive years including an award for Outstanding Achievement in the rail
industry in September 2005. In the last seven years, the DLR service
consistently improved its performance and is currently achieving passenger
satisfaction scores close to 95% and reliability scores of over 97%.

Serco operates a similar driverless urban transport service in Copenhagen, as
well as the Manchester Metrolink, heavy rail services at Merseyrail and
Northern Rail (in joint venture with NedRailways) and across Australia on the
Ghan and Indian Pacific trains.

Christopher Hyman, Chief Executive of Serco Group plc said: 'We are very
pleased that Transport for London has recognised the commitment of Serco's
Docklands team to meeting and exceeding the expectations of passengers. We have
an excellent working relationship with Transport for London and are passionate
supporters of their plans for DLR which continue to support regeneration and
growth in this part of London.

'We look forward to maintaining and improving upon the standards we have
reached, and contributing to London's successful staging of the 2012 Olympics.'

Ends

For further information, contact: [phone]

Richard Hollins, Head of Investor Relations

Graham Capper, Head of Media and Public Relations

Dominic Cheetham, Director of Corporate Communications

Notes to editors:

Serco is a leading international service company, operating in a broad range of
sectors, including transport, home affairs, defence, aerospace, IT services,
education, local government, science and health. More information can be found
at www.serco.com.

The customer for this contract is Docklands Light Railway Ltd, which is a
wholly owned subsidiary of Transport for London.