Re Contract

Serco's joint venture to become UK's largest provider of pathology services

21 September 2010

Serco Group plc (Serco), the international service company, is pleased to
announce that it is expanding and strengthening its UK pathology business with
the addition of a leading NHS foundation trust to its joint venture to form the
UK's largest single provider of pathology services.

Under the agreement, King's College Hospital NHS Foundation Trust (King's) has
joined GSTS Pathology, the joint venture between Guy's & St Thomas' NHS
Foundation Trust (Guy's and St Thomas') and Serco. GSTS Pathology has been
awarded a ten-year contract valued at around £300m, starting October 2010, as
the principal provider of pathology for King's. It is anticipated that the
agreement will result in incremental revenue to Serco over the term of the
King's contract of approximately £110m.

The new joint venture will conduct over 10 million individual tests per year
for customers from within the NHS and wider health sector. It is already the
prime pathology provider for Guy's and St Thomas' and Bedford Hospital NHS
Trust. King's has one of the largest integrated, automated laboratories in
Europe and will further enhance the range of tests available to customers of
GSTS Pathology.

GSTS has already transformed the way pathology services are provided by
focusing on innovation, quality and service. It has set new standards in
patient care and substantially improved efficiency, for example by more than
halving cervical screening times and introducing its own swine flu test in
record time. These achievements have been made possible by combining Serco's
capabilities in transformation, service integration and change management with
the NHS's clinical and scientific excellence.

Christopher Hyman, Chief Executive of Serco Group, said: "King's College
Hospital and Guy's and St Thomas' both have a deserved reputation as leading
NHS Foundation Trusts and teaching hospitals. The addition of King's to our
pathology partnership with Guy's and St Thomas' creates the UK's leading single
pathology provider. It positions us well for further growth in a growing market
worth some £2.5bn per annum in the UK. It further underlines our desire to work
in partnership with the NHS to transform services for the benefit of patients
and clinicians alike."

Ends

For further information please contact Serco:

Charles King, Head of Investor Relations T [phone]

Dominic Cheetham, Director of Corporate Communications 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

About the joint venture agreement

Serco's share of GSTS Pathology prior to this agreement was 50%. Under the
agreement, as a result of the inclusion of King's into the joint venture,
Serco's share of the joint venture is expected to reduce over time. Serco will
retain a minimum one-third share of the joint venture.