Confirmation of major new contract in the US

Confirmation of major new contract to support US healthcare eligibility

5 August 2013

Serco Group plc (Serco), the international service company, confirms the award
of a new contract by the United States Department of Health and Human Services'
Centers for Medicare & Medicaid Services (CMS) to provide processing support
for new health benefit exchanges. Serco will provide and manage labour to
review, verify and process applications on a `cost-plus-fixed-fee' basis. The
contract, which is now in effect, has a one-year base period valued at
approximately $115m with further four one-year options. Including all potential
option periods and optional tasks, the contract has a potential total contract
value of approximately $1.25bn.

The Patient Protection and Affordable Care Act introduced a series of consumer
choices and insurance competition through a Federally Facilitated Marketplace
(FFM). The exchange is a state-based marketplace that accepts applications and
determines eligibility for applications, as well as participation and enrolment
into affordable health insurance and insurance affordability programs. The
Affordable Care Act directs CMS to establish and operate marketplaces for
states that do not elect to establish their own.

Serco will manage approximately 1,500 staff in the US that will support CMS
with the routing, automated processing, reviewing, and troubleshooting of
applications submitted for enrolment into a Qualified Health Plan. Serco will
also provide records management and verification support.

The contract award builds on Serco's strong capabilities in records management
and processing for the US Government, which include the classifying of patent
applications for the US Patent and Trademark Office and the processing of visa
applications at the US Department of State's National Visa Center.

Christopher Hyman, Chief Executive of Serco Group plc, said: "We are delighted
to be awarded such an important contract to support the Affordable Care Act in
the United States and our Americas division looks forward to working with the
Centers for Medicare & Medicaid Services. We have extensive experience in
records management and processing for the US Government, and following the
award of the Virginia transport management contract earlier this year we are
making excellent progress in our strategy to further broaden the portfolio."

Ends

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

Around the world, 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, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.

More information can be found at www.serco.com