Re Contracts

Reliance Security Group PLC
04 October 2004


                                                                  4 October 2004
For immediate release

                    Reliance Security Group plc ('Reliance')

   •Preferred Bidder : Cleveland Police Authority PFI
   •Contract Award : Juvenile Custodial Escort Services for the Youth Justice
    Board         
   •Scottish Prison Service : Roll-out in Edinburgh and Lothian

The Directors of Reliance are pleased to announce that Reliance Secure Task
Management Limited ('RSTM'), a wholly-owned operating company, has been
selected, in partnership with HBOS plc and Equion Ltd, as the Preferred Bidder
for a 25 year Private Finance Initiative ('PFI') contract for Cleveland Police
Authority.

The project involves the financing, design and construction or refurbishment of
three custody centres, two divisional headquarters and two town centre police
stations. Subject to contract award, which is expected in January 2005,
construction work would start in March 2005. RSTM would provide a comprehensive
range of support services, starting in April 2006, including building, utilities
and asset management; security services and health & safety management; laundry
and waste management; grounds maintenance and pest control; storage and handling
of video and audio tapes; the handling of stray dogs and the provision of a help
desk. It is estimated that the 25-year support services contract will generate
turnover for RSTM of £1.5 million in a full year.

The Directors of Reliance are also delighted to announce that RSTM has been
awarded a contract, initially for 5 years, to provide juvenile custodial escort
services throughout the whole of England and Wales for the Youth Justice Board.
The contract, which is due to start on 1 April 2005 will cover movements across
the area from 3 Secure Training Centres, 23 Local Authority Secure Children's
Homes and 14 Young Offender Institutions, and is expected to generate turnover
for RSTM in excess of £2 million per annum in a full year.

The Directors of Reliance further announce that RSTM continues to make excellent
progress in the roll-out of its £150 million 7-year contract for the provision
of prisoner escorting and court services in Scotland. The next phase, covering
Edinburgh, Lothian and the Borders, will commence operation later this week.
This follows a successful period of shadowing the service for that area and
continuing high levels of performance elsewhere.

Tom Riall, Managing Director of Reliance Secure Task Management Limited,
commenting on the Cleveland Police and Youth Justice Board contracts, said:

'We are delighted to have been selected as Preferred Bidder for the Cleveland
Police PFI contract, which further emphasises our specialist expertise and
capabilities in the provision of business process outsourcing services within
the criminal justice sector. Our approach, which focuses on productive
partnerships and long-term development, will generate high levels of service and
enable us to enjoy an excellent continuing relationship with Cleveland Police
Authority.

The award of the Youth Justice Board contract is a significant step in the
development of our already well-established escorting and custodial services
business into new areas of activity. We are very pleased to have secured this
opportunity and are looking forward to developing our relationship with the
Youth Justice Board.'

Note:

Reliance is an established market leader in the provision of contract security,
facilities management and support services and in business process outsourcing.
Reliance employs over 12,000 people from a network of offices throughout the UK.

Enquiries:

Brian Kingham
Chairman                  020 7730 9716

Neil French
Group Finance Director    01895 205002



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