Serco signs environmental services contract

Serco signs £160m contract to provide environmental services in London Borough
of Bexley

2 November 2009

Serco Group plc (Serco), the international service company, announces that it
has signed a contract with the London Borough of Bexley to provide a full range
of environmental services, including refuse and recycling collection,
commercial waste and street cleaning. The contract, which will commence this
month, is for an initial term of ten and a half years, with an option to extend
for a further five years, and is valued at over £160m over the full fifteen and
a half years.

Under the contract, Serco's innovative approach will result in an enhanced
standard of cleanliness in residential areas, improvements to the efficiency of
the environmental services, and a reduction of 40% in the service's carbon
footprint. This will be achieved through initiatives such as the co-ordination
of street cleaning with refuse and recycling collections, the use of street
washing and graffiti cleaning teams, and preventative marketing campaigns.
Serco will also reduce vehicle movements and environmental impacts through "one
pass" recycling services which will combine recycling operations in a single
vehicle movement, and by the introduction of electric vehicles and bio-fuels.

With this contract, Serco now provides environmental services to fourteen local
authorities in the UK. This contract is Serco's third with a London borough,
where we currently provide waste and street cleansing services for the London
Borough of Hammersmith and Fulham, and landscaping services for the London
Borough of Newham.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to
have been chosen by Bexley, and look forward to working with them to deliver
further improvements for their residents. This contract represents a further
significant development for our environmental services business, where our
innovative approach is leading to significant opportunities."

Ends

For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

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 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, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com

Serco's Environmental Services contracts

Serco currently provides environmental services to the following local
authorities: Winchester City Council and Canterbury City Council (waste, street
cleansing and buildings); Cornwall County Council, Mid Sussex District Council,
Welwyn Hatfield Borough Council, Milton Keynes Council, Breckland District
Council and Charnwood Borough Council (waste and street cleansing); Woking
Borough Council (street cleansing and grounds services); London Borough of
Newham (landscaping); Mid-Suffolk and Babergh District Councils (waste); and
the London Borough of Hammersmith & Fulham (waste & street cleansing). Serco
had previously announced at its half year results in August that it had been
appointed preferred bidder for the contract with the London Borough of Bexley.