Serco signs new GBP400m DLR franchise

Serco signs new £400m Docklands Light Railway franchise

8 March 2006

Serco Group plc ('Serco') has announced that it has signed the franchise
agreement to continue to operate, maintain and support the Docklands Light
Railway (DLR).

The seven year contract, which is planned to start on 28 May, may be extended
for a further two years and is valued at around £400m over this extended
period.

The new franchise provides for further improvements for passengers including a
maximum of ten minutes between trains at any time, trains every three minutes
at peak times on the busy Lewisham to Bank line, punctuality of more than 96%,
customer satisfaction levels of at least 90% and close to 100% availability for
services such as ticket machines, escalators and information displays.

The franchise will also see significant new security enhancements including new
`Travel safe' officers to patrol stations and trains during late hours and
upgraded CCTV on stations and trains. During the new franchise, Serco will
oversee the introduction of three-car trains and new services to Woolwich and
Stratford International.

Serco Group Chief Executive Christopher Hyman said: 'We are delighted that
Transport for London has again selected us to run DLR. With the new franchise,
we aim to continue to deliver what passengers want: reliable, punctual, safe
and clean trains and helpful staff. We are also confident of delivering world
class services for visitors to the Olympics in 2012.'

Howard Smith, TfL's London Rail Chief Operating Officer, said: 'The DLR is the
most reliable railway in the UK. We look forward to continuing our excellent
working relationship with Serco and, continued investment in DLR through TfL's
five-year £10bn investment programme.

'Over the last nine years of the franchise, DLR passenger numbers doubled from
25 to 50 million, stimulating the growth and success of communities and
businesses across East London. This new franchise agreement, together with
further extensions to Woolwich and Stratford International and the 50% increase
in capacity on the Bank-Lewisham Route, lays a firm foundation for the London
2012 Olympic transport network.

'DLR and Serco will continue to work together to meet future demand and build
on the DLR's unrivalled reputation for dependability and delivery.'

Serco was appointed preferred bidder for the new franchise agreement in
November 2005.

Ends

For further information, contact: [phone]

Richard Hollins, Head of Investor Relations

Graham Capper, Head of Media and Public Relations

Notes to editors

Serco improves services by managing people, processes, technology and assets
more effectively in the transport, defence, education, health, home affairs,
local government, science, technology and commercial sectors, working in 37
countries. Serco advises policy makers, designs innovative solutions,
integrates systems and delivers to the public. 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

Press Release