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Capita Group PLC (CPI)

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Thursday 01 November, 2001

Capita Group PLC

Re Contract

Capita Group PLC
1 November 2001

1 November 2001

                             THE CAPITA GROUP PLC

     Update on London Borough of Croydon's proposed contract with Capita

In June 2001, the London Borough of Croydon appointed Capita as the preferred
strategic partner to lead the development of its Customer Focus Project. The
project involved the transfer of a number of existing services and the
transformation of customer facing services and their support infrastructure.

Since that time, Capita has been working on the early implementation phase of
the project, for which it has been paid, whilst in tandem finalising the Terms
of the Contract between the London Borough of Croydon and Capita.

In recent weeks, it has become clear that the extent of risk which Croydon is
now requiring Capita to assume within the contract is not commensurate with
the anticipated reward. Accordingly, it has been agreed that the discussions
will be terminated and the partnership will not proceed.

For further information:

The Capita Group Plc                                     020 7799 1525

Rod Aldridge, Executive Chairman

Paul Pindar, Chief Executive

Shona Nichols, Marketing Director