Re Contract

Capita Group PLC
20 November 2003

20th November 2003

                               CAPITA TO PROVIDE
                   LIFE & PENSIONS ADMINISTRATION SERVICES TO
                            PRUDENTIAL INTERNATIONAL
                       & ST. JAMES'S PLACE INTERNATIONAL

The Capita Group Plc ('Capita') announced today that it has been appointed by
Prudential plc's international cross-border life assurance Dublin-based
operation to provide a full range of end-to-end life and pensions administration
services for its portfolio of new and existing business. As a result of this
transaction, Capita will also assume responsibility for delivering end-to-end
services for the Dublin based life assurance business of St. James's Place
International plc.

The contract between Capita and both Prudential International Assurance plc and
St. James's Place International plc is projected to generate revenues to Capita
of £110 million over ten years, in line with the growth in anticipated levels of
policies over the period, with £18 million due to be secured in the first year.
Capita is purchasing the share capital and therefore the assets of Prudential's
Dublin-based services company, Prudential Europe Management Services Ltd (PEMS),
as part of the agreement for an undisclosed amount. The agreement involves the
transfer to Capita of the end-to-end policy administration services provided by
PEMS including the management of operations, such as new business
administration, in force policy administration, finance and actuarial services.

Rod Aldridge, Executive Chairman of Capita commented: 'This agreement marks a
significant milestone for Capita as we successfully build our Life and Pensions
administration business. We are delighted to have this opportunity to support
Prudential, a company at the forefront of its industry. The contract is unique,
being the first significant outsourced Life & Pensions arrangement to administer
open book schemes. For both Prudential International and St. James's Place
International we will be processing new business alongside existing business,
expanding the administration operation rather than managing closed books in run
off.

'The combination of PEMS highly skilled and experienced workforce with our own
provides a stronger platform from which to accelerate the growth of our Life &
Pensions business. This operation in Dublin will become a key part of Capita
Life & Pensions working alongside Capita's existing administration centre in
Gloucester. We are now ideally positioned in the Life and Pensions market, with
our ability to support both financial organisations' UK operations and their
international offerings based in Ireland, as well as domestic Irish insurers.

'We welcome the 260 staff who will transfer to Capita with the contract. They
join a thriving business and will play a key role in the expansion of our Life &
Pensions business.'

Mark Wood, Chief Executive of Prudential Assurance UK and Europe commented:
'Prudential is pleased to enter into this partnership with Capita, who have been
selected to manage the Prudential International portfolio due to their extensive
expertise and experience in the provision of high quality end-to-end services.
We look forward to working closely with Capita in building this mutually
beneficial arrangement.'

                                      Ends

For further information please contact:

The Capita Group Plc 
[phone]
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Communications Director

Press Office 
[phone]

Prudential Press Office
Darragh Leeson, Prudential UK/Europe Press Office 
[phone]/[phone]

Finsbury 
[phone]
Morgan Bone
Anthony Silverman


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 17,000 employees at more than 200
offices across the UK, Capita is quoted on the London Stock Exchange (CPI.L)
with forecasted revenues for 2003 of £1075 million.

In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland
Sunday Times Business Awards. Capita has won Management Today's Most Admired
Support Services Company Award in 2001 and 2002.

Further information on The Capita Group can be found at: www.capita.co.uk

Prudential Europe Management Services Limited is a management services company
based in Dublin and is a fully owned subsidiary of Prudential. Prudential Europe
Management Services provides a full range of services to life assurance
companies including Prudential International Assurance plc and St James's Place
International plc.

Prudential International Assurance plc is a life assurance company based in
Dublin and is a fully owned subsidiary of Prudential. Prudential International
Assurance plc is the international cross-border life assurance operation of
Prudential plc. More information can be found at www.prudential-europe.com






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