Update Re Contract

Capita Group PLC
22 March 2001


22 March 2001



 Capita and Blackburn with Darwen Borough Council Strategic Partnership scope
        and value increased to £190 million over a period of 15 years

Capita and Blackburn with Darwen Borough Council have finalised the formation
of a 15 year Strategic Partnership worth in excess of £190 million to deliver
a wide range of modern support services.  The initial partnership scope worth
an estimated £80 million over 10 years, announced in November 2000, has been
substantially increased following detailed discussions and further work
regarding the structure and scope of services to be delivered.  The 15 year
Partnership agreement is, as far as we are aware, the longest that has been
agreed to date across the local authority market.

Rod Aldridge, Executive Chairman of the Capita Group Plc, commented,

'This is a unique, ambitious public-private partnership that is set to
transform the way many local services are delivered.  The open, joint approach
to shaping and defining the final scope of the Partnership with a single,
preferred partner has enabled the Council and Capita to structure a totally
fresh way of delivering public services.  The Partnership will deliver a wide
range of services to local people in a manner that fully supports service
excellence and modernisation through a new service model that will enable
savings to be generated.  The structure of the Partnership ensures that it is
of mutual benefit to the Council, Capita and the local community.'

Councillor Gail Barton, Executive Member for Resources, said: 'This
partnership is excellent news for the regeneration of the Borough. I am
delighted that Capita and ourselves have worked closely together and I know
that the public and private sectors can learn a great deal from each other
about delivering value for money services.  We can look forward to enhanced
quality for the business support and other services delivered through the
partnership. It will also result in considerable revenue savings for the
Council and the ability to use money for front line services which would
otherwise have been needed to upgrade and replace existing systems and
services.'

The partnership will help deliver the Council's vision by:


*         Continuously improving the quality of the services it provides to
local people, ensuring that local performance continues to be amongst the best
in the country

*         Supporting the Community Plan, tailoring services to meet the needs
of different communities

*         Supporting the Council's modernisation programme through new service
delivery models

*         Helping to work with other local service providers

As part of the Partnership, Capita will establish a business centre in the
Borough delivering customer and support services to the Council and other
public and private sector organisations.  The business centre will look after
all or part of the following core Council services:

- Digital Technology and all new technology issues

- Human Resources, including personnel advisory and development services and
payroll

- Financial services

- Revenues and benefits, such as housing benefit

- Services currently carried out by the Technical Services Department, such as
property management, architecture and civil engineering

- Administration support for a variety of services, including Education and
Social Services

Between 450 and 500 staff will transfer from the Council to Capita to form the
core team of the new business centre.  The first 18 months of the Partnership
will see 120 new jobs created in Blackburn with Darwen, increasing to 500 over
five years.

Rod Aldridge commented further,

'We are delighted to form this extensive Partnership with Blackburn with
Darwen because of its growing national reputation for excellence.  In a short
time as a unitary authority, it has achieved Beacon Status for Education and
is one of the first councils in the country to sign a Public Service Agreement
with the Government, which means performing to a higher standard than expected
from other authorities.  The positive, co-operative and forward-looking
attitude of the Council Members, Officers and staff has laid firm foundations
for developing a strong and successful partnership.'

                                    -Ends-

For further information:


The Capita Group Plc                                              020 7799 1525

Rod Aldridge, Executive Chairman
Shona Nichols, Group Marketing Director

The Capita Group Plc Press Office                                 020 7544 3141

Blackburn with Darwen Borough Council                             01254 585 335

Alison Milner, Director of Policy

Hogarth Partnership (for The Capita Group Plc)                    020 7357 9477

James Longfield/John Olsen


Notes for Editor:

The Capita Group Plc



The Capita Group Plc is one of the largest and fastest growing professional
support services organisations in the UK. Capita provides an integrated range
of professional support services on long-term contracts across the private
sector, local and central government and education in the UK.  With over 9,000
people working across a network of over 100 sites, generating a turnover in
excess of £450m, our achievements promoted us to the FTSE 100 in 2000.



We draw on our wide base of skills and sector expertise to generate and
successfully implement tailored service solutions.  Capita's capability spans
leading edge customer and administration services, HR services, IT and
strategic support, software and property consultancy.