LHR Education Ltd Acquired

Capita Group PLC
5 January 2000

   Capita enhances its human resource offering to the
                    education market

      Acquisition of LHR Education Limited ('LHR')

The Capita Group Plc ('Capita') announces the acquisition
of  LHR,  a  leading teacher placement  agency,  for  £12
million.

LHR,  which  employs  47  staff in  the  United  Kingdom,
generated  some £1,260,000 of profit before  taxation  on
turnover  of £14,140,000 and net assets of £1,416,000  in
the year to 31 July 1999.  The acquisition of LHR follows
Capita's  recent  acquisition of another  leading  supply
teacher   supplier,  Capstan,  and  further   strengthens
Capita's   human  resource  services  offering   to   the
education market.

The  purchase  consideration of  £12  million  is  to  be
satisfied  by  the  payment of £3  million  in  cash  (£1
million  of which is deferred until March 2000 after  the
integration of the business into Capita's Human  Resource
Services Division) and through the issue of £9 million in
loan notes.

Rod Aldridge, Executive Chairman of Capita, commented:

'The  acquisition  of  LHR enhances  the  human  resource
services that Capita provides to the education market and
further   strengthens  the  Group's  wide  portfolio   of
education  support  services.   The  Group  now  has   an
enviable presence in the UK education market and is  well
positioned  to  meet the extensive opportunities  arising
from  the Government's increasing focus on improving  all
aspects of the education service.'

Capita is already a leading support services provider  to
the education sector with relationships with more than 80
per  cent of UK schools and extensive penetration of  the
Higher and Further Education market sectors.  The Group's
human  resource  services now span both the  private  and
public  sectors  with  specialist  expertise  across  the
entire  employee  cycle  focussing  on  both  sector  and
service specific requirements.

The  acquisition is subject to the formality  of  gaining
tax clearance, which is expected shortly.


For further information:

The Capita Group Plc                    0171 799 1525
Rod Aldridge, Executive Chairman
Shona Nichols, Group Marketing Director

Issued by
Hogarth Partnership,
John Olsen                              0171 357 9477



Notes to Editors

The  Capita  Group Plc is one of the largest and  fastest
growing professional support organisations in the UK. The
Group   delivers   a   range  of   integrated   solutions
encompassing customer, administration and human resources
services, IT, consultancy and property services  to  both
public sector and private organisations. With over  7,000
people  operating from some 80 UK sites, Capita is quoted
on the London Stock Exchange and is FTSE 250 company with
a market capitalisation of over £2.3 billion.

For   further  information,  please  visit  the   Group's
website:-

www.capitagroup.co.uk