Holding in Company

Capita Group PLC
2 January 2001

Letter to Capita Group PLC

Companies Act 1985 (as amended)(the 'Act')
Disclosure of Interests in Shares

For the purpose of this and future notifications pursuant to Part VI of the Act,
we write to inform you that with effect from close of business on 31 December
2000, the regulated business of M&G Investment Management Limited ('MAGIM') was
transferred to Prudential Portfolio Managers Limited ('PPM').  The latter has
today been renamed as M&G Investment Management Limited.  Consequently, you will
observe in the current notification (and in all future notifications henceforth)
that the PPM name has in all instances been replaced by that of M&G.

We also write to inform you that with effect from 28 December 2000, the life and
pensions business of M&G Life Assurance Company Limited and M&G Pensions and
Annuity Company Limited respectively was transferred to Scottish Amicable Life
plc.  From the date hereof, all notifications will therefore identify Scottish
Amicable Life plc as the operator of all former M&G life and pension funds.

In view of the above, the schedule below detailing those interests currently
held by Prudential plc and certain of its subsidiary companies, which reflects
the recent changes to the investment management business of M&G.  You should be
aware that all notifications will now be made by M&G Investment Management
Limited on behalf of all companies within the Prudential plc group of companies.

For the purpose of S210 of the Act, the address for those companies identified
in the schedule below is Laurence Pountney Hill, London EC4R OHH.

In order to assist us to comply with our notification obligations under the
Banking Act, Insurance Companies Act and Investment Services Regulations, we
would appreciate it if you would notify us of any future changes within your
group structure relating to the formation, acquisition or disposal of any of the
following: (i) a bank, (ii) an insurance company and/or (iii) an authorised
investment firm.

          Notifiable Position Report for CAPITA GROUP ORD GBPO.02
                            as at 29 December 2000

Percentage holdings are calculated using an issued share capital of 653,222,764
ORD GBP0.02 shares

                        Registered Holder                 Holding   %  Total
Prudential PLC                                         27,046,355 4.14 Notifable
                                                                       Interest 
                        M&G(LOMBARD ST)NOMS AA            714,597
                        M&G(LOMBARD ST)NOMS FPM           556,581
                        M&G(LOMBARD ST)NOMS G             340,500
                        M&G(LOMBARD ST)NOMS K           1,299,000
                        PRUCLT HSBC GIS NOM(UK) PAC AC 20,658,551
                        PRUCLT HSBC GIS NOM(UK)PPL AC   3,477,126
       
The Prudential 
Assurance Company Ltd                                  24,135,677  3.69

                        PRUCLT HSBC GIS NOM(UK)PAC AC  20,658,551
                        PRUCLT HSBC GIS NOM(UK)PPL AC   3,477,126

From M&G Investment