Acquisition

Capita Group PLC 09 November 2005 9 November 2005 CAPITA ACQUIRES LONSDALE TRAVEL The Capita Group Plc ('Capita') announces that it has acquired the entire share capital of Lonsdale Travel Limited ('Lonsdale'), one of the UK's leading independent travel management companies. Capita will pay £10.25 million on completion, to be satisfied by the issue of 64,185 new ordinary shares in Capita and £10 million in cash. A further £250,000, payable in cash, will be paid over the next four years, subject to the business achieving certain performance targets. Lonsdale is ranked number 11 in the Business Travel Company market and provides a wide range of travel administration services to organisations across the public and private sectors. Lonsdale is Capita's preferred supplier of travel services and Capita currently represents approximately 16% of Lonsdale's business. Lonsdale's audited accounts for the year ended 30 November 2004, recorded operating profit of £2.0 million on net fee income of £7.3 million. As at 30 November 2004 Lonsdale had audited net assets of £1.7 million. Some 220 employees, based primarily in Derby, will transfer to Capita and the founder and Chairman of Lonsdale, Stuart Webb, is retiring from the business as part of the transaction. Rod Aldridge, Executive Chairman of The Capita Group Plc, said, 'This acquisition extends and complements our existing portfolio of services which are focussed on transforming the quality and efficiency of our clients' back office and customer facing services. With many public and private sector organisations increasingly outsourcing non-core administration operations, we are constantly expanding our service offering to enable us to provide broader support to our clients. Just as we targeted and built up over the past 20 months a market leading position in supplying outsourced occupational health services, we have now identified travel administration as an area of major spend where we can add value to our clients by offering effective outsourced services. Organisations spent £14.7bn* on business travel in the UK in 2004 and we estimate that some £3bn is spent across the public sector alone. The administration costs of this activity are very significant and ripe for re-engineering. 'The acquisition will open significant cross-selling opportunities for both companies and bring clear benefits to existing customers. We welcome all the employees of Lonsdale Travel to Capita and look forward to working with them and continuing to grow the business.' - Ends - * Business Travel Market, Keynote January 2005 For further information please contact: The Capita Group Plc +44 (0)20 7799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director Press Office +44 (0)870 2400 488 Notes to Editors: The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass customer services, financial services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With over 23,000 employees at more than 230 offices across the UK and Ireland, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285 million. Capita has secured a number of awards including Best BPO Services Provider 2004. Further information on The Capita Group Plc can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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