Trading Statement

Capita Group PLC 03 December 2007 3 December 2007 The Capita Group Plc Trading Update The Capita Group Plc ('Capita') is issuing a trading update ahead of its preliminary results announcement for the period ending 31 December 2007, due to be released on 29 February 2008. The strong first half revenue growth has accelerated in the second half, with our businesses performing well. Since our interim results in July 2007, we have signed two significant contracts to deliver outsourced services on behalf of: • Co-operative Insurance - to administer 4.5 million policies across their life and pensions and unit trust operations. The contract is worth £270 million over 10 years (previously announced as £250m at preferred supplier stage). • Prudential UK - to administer 7 million mature life and pensions policies including group and individual pensions, investment bonds and life and endowment policies. The contract is worth £722 million over 15 years. To date in 2007, Capita has therefore won major contracts worth £1.89bn (FY 2006: £1.37bn), further strengthening our position as the UK's market leader in business process outsourcing services to the public and private sectors. A key element of our growth strategy is the acquisition of small to medium sized companies which extend our presence in existing markets or provide a footprint in a new market. To date in 2007, we have completed twelve acquisitions for an aggregate initial purchase consideration of £115m. These acquisitions will make a positive contribution towards our planned revenue growth for 2008. From an operational perspective, Capita continues to perform strongly. Our operations in India are an increasingly important part of Capita's strategy going forward. Accordingly, our announcement last week that we will be acquiring a significant proportion of the Prudential's Indian operations, taking our head-count in India to some 2,300, is of considerable importance. This gives us increased scale, increased expertise and the opportunity to build our offshore capabilities rapidly. The Group continues to place the utmost importance on its core financial disciplines. This includes ensuring we sign contracts that enable us to create value for our clients, balance performance and risk sensibly and generate acceptable margins for Capita. We have therefore built up a contract base which delivers service excellence and continues to generate strong operating cash flow. With regard to the latter, we anticipate reporting a positive working capital movement in 2007, notwithstanding the significant level of incremental new revenue that the Group has secured. Our bid pipeline has been replenished strongly after our record wins this year and our two most active markets remain local government and life and pensions. We also believe that our clients' likely emphasis in 2008 upon increasing cost efficiency whilst materially improving service quality will generate an enhanced level of opportunities. With the excellent revenue visibility that we enjoy, we are confident we will deliver a strong performance in 2007 and 2008 and we have a good pipeline of opportunities to fuel growth beyond this. Paul Pindar, Chief Executive, will host a conference call for investors and analysts at 9.00am today. Details of the conference call are: dial-in number: +44 (0)1452 569 393, call reference: 25987067#. A replay of the call will be available until 9 December: dial-in no: +44 (0)1452 550 000, call reference: 25987067# - Ends - For further information: The Capita Group Plc 020 7799 1525 Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director Financial Dynamics 020 7269 7121 Andrew Lorenz / Susanne Yule Note to editors The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass business process outsourcing, (BPO), customer services, administration and support, human resources, ICT, property consultancy, finance & treasury and consultancy delivered to both public sector and private organisations. With 28,500 employees at more than 250 offices across the UK, Channel Islands, Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2006 of £1,739 million. 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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