Strategic Alliance for Education with Microsoft

Capita Group PLC
22 February 2000



    Capita & Microsoft announce a strategic alliance for education

Capita Education Services (Capita ES)  and Microsoft have formed a
strategic alliance to design and develop e-business solutions for
education. The two companies are working closely together on a number
of linked initiatives with the aim of developing a comprehensive ICT
(Information and Communication Technology) based education support
system for UK schools.

Building on the infrastructure provided by the National Grid for
Learning, the alliance will work to create cost effective, bureaucracy
reducing solutions for the education sector through the Internet. A
new Capita service, e-SIMS, is now available to schools providing a 24-
hour on-line support service for SIMS, the school management system
used in over 22,000 schools throughout the UK. In May Capita launched
TP Online, an on-line administration service for teachers' pensions.
This allows schools to transfer information such as teachers'
employment history and salary details securely over the Internet. This
service also enables registered LEA (Local Education Authorities)
employers to validate online the status of potential employees against
the DfEE's list 99, a register of people barred from working with
children.

Capita and Microsoft are web-enabling all Capita's management
information systems for schools through an e-management project based
on Microsoft's SQL 7 database platform and Microsoft's new Windows
2000 Operating System.  In addition, both companies will work together
to produce e-business solutions for education through the development
of e-services, e-commerce, e-learning and e-assessment all accessed
through a dedicated education portal owned by Capita.

Rod Aldridge Executive Chairman of The Capita Group Plc says, 'We are
delighted to have formed this strategic alliance with Microsoft. It is
clear that the Internet will have a significant role in the education
sector, in both learning opportunities and the provision of on-line
services. Our combined strengths will bring significant benefits to
our customers, whilst our positioning as the gateway to education
support services will provide our customers with easy access to the
best tools and services for their particular needs'.

Mark East, group manager Microsoft Education, says, 'We see
significant synergies within the education marketplace for this formal
partnership agreement. As a first step we are obviously delighted with
Capita's immediate endorsement of Windows 2000 and SQL 7 database
technology. We strongly believe that this is the correct way forward
in the establishment of a secure and professional database for an
education management system like SIMS.'

Both companies are committed to playing a major role in using the
Internet to support the education sector in raising educational
standards and in reducing the administrative burden for those involved
in education.


For further information:

The Capita Group Plc                       020 7799 1525
Rod Aldridge, OBE, Executive Chairman
Shona Nichols, Group Marketing Director
John Olsen / James Longfield, Hogarth PR

Microsoft                                  Tel: [phone],
Lee Murgatroyd, AUGUST.ONE Communications  Mob: [phone]


The Capita Group Plc is one of the largest, and fastest growing,
professional support services organisations in the UK, operating in a
sector forecast for continued rapid growth. Capita is a first choice
partner in the provision of innovative business support services. We
are dedicated to enhancing quality and value in our customers'
business and their customer facing operations.

Our advantage is our ability to draw on a wide base of professional
expertise to generate, and successfully implement, tailored solutions.
Capita's capability spans leading edge customer service and contact
centres; human resource services; systems and strategic support;
software services and property consultancy. With over 6,700 people at
over 100 UK sites, Capita is quoted on the London Stock Exchange and
is a FTSE 250 company with a turnover of over £320 million and a
market capitalisation of approximately £2.3 billion.

Microsoft (Nasdaq 'MSFT'), founded in 1975, is the worldwide leader in
software for personal and business computing. The company offers a
wide range of products and services designed to empower people through
great software-any time, any place and on any device.