Scottish Executive - Electronic Monitoring

Serco signs £30m contract to monitor offenders in Scotland           
         and is appointed preferred bidder for £29m prison development         

Serco Group plc ('Serco' or 'the Group') today announces that it has been
awarded a five-year contract by the Scottish Executive to deliver electronic
monitoring of offenders throughout the country.

The five-year contract is valued at around £30m and is due to start in April
2006. At the end of the five-year period the contract may be extended for a
further two years.

Serco will enhance value for money for the Scottish Executive by investing in
employees' skills and integrating innovative new technology, sourced through
its subsidiary Premier Geografix.

The group already monitors offenders in two regions of England and Wales and
supplies monitoring equipment to governments in Australia, South Africa, Italy,
British Columbia and Newfoundland.

Serco has been appointed preferred bidder to manage the construction and
operation of a 120-bed houseblock at Lowdham Grange prison in Nottinghamshire .
Serco already runs Lowdham Grange under a contract with the Home Office , which
has 18 years remaining. The new contract, which is subject to planning
permission, is valued at £29m over 18 years.

The home affairs market is of growing significance to Serco and these new
opportunities follow the UK government selecting the Group for a £100m contract
to provide solutions to help detect the illicit importation of radiological
substances at UK ports of entry.

Chris Hyman, Chief Executive of Serco Group plc said: 'We are very pleased that
the Scottish Executive has chosen us to deliver this important service for the
people of Scotland. Serco will deliver an efficient, effective electronic
monitoring service that contributes to reducing offending and improving public
safety.

'We are enhancing our reputation for building partnerships that deliver
reliable, innovative and value for money services and this is reflected in the
recent decisions by the Scottish Executive to engage us and by the Home Office
to extend our work on their behalf.'

Ends

For further information, contact T [phone]:

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

Notes to editors:

Serco is a leading international service company, operating in a range of
sectors, including home affairs, defence and aerospace, IT services, education,
local government, transport, science and health. More information can be found
at www.serco.com.

Serco delivers a broad range of specialist services across the home affairs
arena including custody, community monitoring of offenders, prisoner escorting,
ICT and infrastructure support and homeland defence solutions.