Re Contract

Capita Group PLC
05 April 2004


Press Information

5th April 2004

              CAPITA TO PROVIDE SUPPORT TO DIXONS GROUP CUSTOMERS

     Capita signs contract to provide customer contact centre services for
                     Dixons, Currys, PC World and The Link

The Capita Group Plc ('Capita') has signed a contract to provide extensive
customer contact centre services to Dixons Group plc from Dixons' existing call
centre facility in Sheffield. The five-year contract will see Capita handle the
full range of routine customer contact operations, such as customer service,
product and sales enquiries for Dixons, The Link, Currys and PC World. Under the
terms of the contract Dixons Group will pay Capita an annual fee of
approximately £18 million subject to the achievement of agreed performance
standards and targets.

As part of the agreement Capita will also assume Dixons Group's contract for the
provision of narrowband technical support to Freeserve customers. Dixons Group
will continue to provide all other technical support contact services to
customers in-house. Capita will also handle insurance-related customer enquiries
for Dixons Group Insurance Services.

Under the agreement the 800-strong workforce based at Dixons Group's Nunnery
Square site will transfer to Capita and continue operating from the same
facility. Capita has committed to a range of customer service and systems
enhancements that will ensure more effective transfer of information between
customers, the contact centre and business unit teams. Enhancements will include
the re-design of current processes, introduction of voice recognition software
and improved monitoring of contacts to further improve the quality of the
customer experience. A Capita team will manage the transition and transformation
programme alongside existing management. The contract commences on 4th April
2004.

John Clare, Dixons Group Chief Executive, said: 'We are very proud of the
leading-edge customer service facility and the first-rate team that we have
created in Sheffield. We are equally determined to find new ways of improving
and broadening the services that we offer the millions of customers that shop
with us every year. I am confident that our relationship with Capita will bring
significant benefits and service improvements to customers over time.'

Capita's Executive Chairman, Rod Aldridge, commented: 'Capita is delighted to
have been chosen to handle the customer service of such a prestigious
organisation. We now plan to re-engineer the processes behind the activity of
these centres, to enhance the service received by customers of Dixons Group and
Freeserve. We are determined to ensure this operation becomes a beacon of best
practice in the retail sector. We welcome the highly skilled and experienced
staff who will transfer to Capita with the contract and recognise that they will
play a vital role in the service going forward. The new employees will
automatically join Capita's staff development programme and benefit from being
part of a Group whose core focus is delivering quality customer services.'
                                    - Ends -

For further information:

Capita Press Office - 0870 2400 488 - [e-mail]

Dixons Group - Hamish Thompson, 01727 203195 / 07702 684290

Notes to Editors:

The Capita Group Plc, is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 19,000 employees at more than 200
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L) with revenues for 2003 of £1,081 million.

In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland
Sunday Times Business Awards. Capita has won Management Today's Most Admired
Support Services Company Award in 2003, for the third year running.

The quality of Capita's customer service operations has been widely recognised
by the industry body, the Contact Centre Association (CCA), with Capita-run
contact centres having recently gained CCA accreditations in the following
areas: Bristol and Darwen for its TV Licensing contract, Glasgow and Belfast for
its BBC Information contract, Gloucester for its Lincoln Financial Group
contract, Stevenage for its Hertfordshire County Council contract and Liverpool
and Darwen for the Criminal Records Bureau. Capita is also Contact Centre
Association Member of the Year 2003.

Further information on The Capita Group can be found at: www.capita.co.uk

Dixons Group plc is Europe's leading electrical retailer. More than 35,000 Group
employees work in 1,400 stores across 12 European countries, including the UK,
the Czech Republic, Denmark, Finland, France, Hungary, Iceland, Ireland, Italy,
Norway, Spain and Sweden.

The Group's values statement, Being the Best, encourages all staff to observe
the following core principles:

-    Operating with honesty and integrity
-    Giving outstanding service to customers
-    Respecting our colleagues
-    Continually seeking ways to improve our performance
-    Working together to beat the competition

The Group's retail and business to business brands include Currys, Dixons,
Dixons Group Business Services, El Giganten, Electro World, Elkjop, Genesis
Communications, Lefdal Lavpris, PC City, PC World, PC World Business, The Link
and UniEuro. Own-brand sourcing operations are managed by the Group's OmniSource
division. The Group is also a leading provider of financial and after-sales
services.




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            The company news service from the London Stock Exchange