Serco signs new prison management contract in A...

Serco signs new prison management contract in Queensland valued at
approximately A$100m

28 July 2011

Serco Group plc (Serco), the international service company, announces today
that it has signed a new five-year contract with the Queensland Department of
Corrective Services to manage and operate the new 300 bed high-security South
Queensland Correctional Centre (SQCC) in Gatton, transferring operations from
Borallon Correctional Centre near Brisbane.

The contract, which will commence on 1 January 2012, is valued at around A$100m
over five years, with an option to extend to ten years. This replaces and
extends a similarly valued five-year contract, due to end in January 2013, to
manage Borallon Correctional Centre which is one of the oldest facilities in
Queensland and is being temporarily decommissioned as part of a wider
reorganisation of the State's prisons.

Under the contract, we will ensure the safe and secure management of the
facility and continue our work to protect the public by reducing reoffending.
Our approach includes effective anti-bullying, self-harm minimisation, violence
reduction, drug, health, and resettlement strategies, as well as culturally
appropriate services and programmes for Aboriginal and Torres Strait Islander
prisoners.

We will draw on our experience and innovative approaches developed in managing
Borallon Correctional Centre and other prisons in Australia, New Zealand and
the UK, and will benefit from the design and technology advances of the new
facility.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted that
the Queensland Department of Corrective Services has chosen to continue their
partnership with Serco with the contract to operate the new Southern Queensland
Correctional Centre. This contract builds on our previous success and track
record at Borallon Correctional Centre, as well as Acacia Prison in Western
Australia and our experience in providing services integral to the criminal
justice system in the UK."

Borallon Correctional Centre won a 2011 Australian Business Award for
Environmental Sustainability, recognising its leadership and commitment to the
enhancement, preservation and protection of the environment. The prison was
also Highly Commended for Offender Education in this year's Minister's Awards
for Excellence in Community Safety, and described as achieving excellent
results for offenders, their families and Queensland Corrective Services.

This year, Serco has also signed contracts to operate Mount Eden Corrections
Facility in Auckland, and to provide Court Security and Custody Services in
Western Australia, where the State's Inspector of Custodial Services described
Serco-run Acacia as "one of the best performing prisons".

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