Serco selected for US defense IDIQ contract

Serco selected for US defense IDIQ contract valued at $200m

18 April 2007

Serco Group plc (Serco) today announces that its US business has been selected
by the US Navy for the Sea Enterprise West contract. Serco will provide
engineering and installation services at ship, shore and submarine locations on
the West Coast of the United States.

The contract with the Space and Naval Warfare Systems Center (SPAWAR) has a
potential value of around $200m. This is a significant increase on the existing
contract, under which Serco has delivered these services to SPAWAR since 1997.
The single award, indefinite-delivery/indefinite-quantity contract has a
one-year base period with four annual options, for a maximum term of five
years.

Serco will provide program management, engineering design and installation
support services for systems known as C4ISR - command, control, communication,
computer, information, surveillance and reconnaisance. A key objective is to
reduce the costs of installations by improving productivity and achieving
long-term efficiencies.

Sea Enterprise is the third major US defense contract awarded to Serco in
recent weeks, following the $225m LOGCAP cost analysis and logistics contract
for the US Army and the $64m Spectech contract for evaluating and deploying
port security systems with SPAWAR.

Christopher Hyman, Serco Group Chief Executive, said: "We are extremely pleased
to have expanded our long-standing association with SPAWAR and we look forward
to helping them achieve their aims. Our US defense business is going from
strength to strength, reflecting the quality of our service and the strength of
our customer relationships."

Notes to Editors

Serco is an international service company which combines commercial know-how
with a deep public service ethos. Serco improves services by managing people,
processes, technology and assets more effectively in the health, education,
home affairs, local government, science, technology, defence, transport and
commercial sectors, in 37 countries. Serco advises policy makers, designs
innovative solutions, integrates systems and delivers to the public. More
information can be found at www.serco.com.

For further information please contact Serco:

T [phone]

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications