Re Contract

Serco awarded new contract to help counter the effects of wind farms on UK air
defence radar

13 January 2012

Serco Group plc (Serco), the international service company, announces that it
has been awarded a new prime contract by the UK Ministry of Defence to further
deploy innovative radar technology to prevent wind farms interfering with the
UK's air defence radars.

New air defence radars will be provided at Remote Radar Head (RRH) Brizlee
Wood, Northumberland and RRH Staxton Wold, North Yorkshire. Serco has
previously been awarded a contract to support the introduction of new radar
technology at RRH Trimingham, Norfolk. The new contract is valued at £27m over
two years and the total combined contract value to Serco is approximately £45m
over a three-year period.

In its capacity as prime contractor, Serco is working with Lockheed Martin in
the US to develop and provide radar technology that resists interference
created by wind farm turbine blades; the lack of such technology had previously
impeded the roll out of wind farms in line of sight of air defence radar
stations. Serco is also responsible for the overall system performance,
undertaking the safety case analysis, introducing new ground to air
communications and providing ongoing consultancy to the energy companies in
relation to their plans for future wind farm developments for a period until
2018.

The installation of the three new radar systems allows the development of up to
four gigawatts of renewable energy, enough to power two million homes. The
innovative technological solution mitigates the problems posed by wind farms
for UK air defence radar, and as a result clears a path for the MOD and the
Department of Energy and Climate Change (DECC) to enable the further
development of wind farms and so help the Government realise its target of
reducing carbon emissions.

Christopher Hyman, Chief Executive of Serco Group, said: "Serco's innovative
approach is enabling the delivery of a key programme to the Ministry of Defence
whilst helping address one of the challenges of developing wind farms in the
UK. We are delighted that we are able to meet the needs of our customer in the
Ministry of Defence whilst fully supporting the wider Government agenda for a
low carbon economy and greater energy security. Serco will be directly involved
in monitoring over 700,000 square miles of airspace around the UK, which along
with our RAF Fylingdales activities, underlines the breadth of our capabilities
in the air surveillance sector."

Ends

For further information please contact Serco:

Stuart Ford, 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