Serco Group plc Selected as Preferred Bidder

Serco selected as preferred bidder for £50m Ministry of Defence service
contract

16 January 2007

Serco Group plc (Serco) today announces that it has been appointed preferred
bidder for a Gibraltar-based contract awarded by the UK Ministry of Defence
(MoD). The five-year contract is valued at around £50m with a further two
option years and the potential for additional work.

Serco, as prime contractor, will manage the maintenance, repair and operation
of the UK Armed Forces estate facilities in Gibraltar, as well as operating and
maintaining the MoD power station, the electrical power and the water
distribution. Support will also be provided to the Naval base and airfield,
including military logistics, workshops, fuel depot and marine services.

Working with our, customer Defence Estates, the contract will benefit from
improved service and greater efficiency, delivered through a more highly
trained and flexible workforce. Serco will integrate the two work areas that
are delivered by a contractor and by the in-house team.

Christopher Hyman, Chief Executive of Serco said: "We are delighted to have
been chosen to help the MoD maximise value and operational output from the
estate facilities in Gibraltar. Serco has an unrivalled track record for
assured delivery of services and we look forward to developing a long-term
strategic relationship with Defence Estates."

For further information please contact Serco: T [phone]

Dominic Cheetham, Corporate Communications Director

Serco is an international service company which combines commercial know-how
with a deep public service ethos. We improve 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 aerospace,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com.

For further details contact:

Serco Group plc, Palm Court, 4 Heron Square, Richmond, Surrey TW9 1EW, United
Kingdom

T [phone] F [phone] www.serco.com

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