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Capita Group PLC (CPI)

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Friday 08 February, 2002

Capita Group PLC

Re Contract

Capita Group PLC
8 February 2002

8 February 2002


                  BBC Signs TV Licensing Contract with Capita

The BBC has signed a 10 year contract with Capita, confirming Capita's
appointment to administer the BBC TV Licensing service. The agreement of terms
and conclusion of negotiations comes less than 2 months after Capita announced
it had been selected as preferred supplier to deliver the service following a
rigorous procurement process. The base contract is worth £500 million over the
term, with additional volume and performance related elements which could
materially enhance the overall value of the contract.

Capita will start immediately on preparations for the transition - which
incorporates multi-channel contact centres, back office administration, IT
services and revenue collection.  The current service is scheduled to transfer
from Consignia in July 2002.

Rod Aldridge, Executive Chairman, The Capita Group Plc, said; 'Following the
contract signing today, we are delighted to officially embark on our partnership
with the BBC to administer and enhance TV Licensing.  We look forward to working
with the BBC and welcoming those colleagues joining us from Consignia.  Capita
will draw on its proven strengths and experience of transitioning and
transforming complex, large scale administration and customer service activities
to ensure a smooth transfer and a successful route forward for delivering an
effective service into the future.'

Zarin Patel, Head of Revenue Management at the BBC said; 'We look forward to
working in partnership with Capita to deliver the most effective TV Licensing
system.  The focus will be on examining opportunities to cut collection costs
and increase licence fee revenue.  Over the next few months the Capita team will
get up to speed with the complexities of the TV Licensing operation.  In the
meantime it's business as usual for TV Licensing.'

                                    - Ends -

For further information, please contact:

The Capita Group Plc                                    020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Capita Press Office                                     020 7544 3141

BBC Press Office                                        020 8576 1865

Issued by Finsbury                                      020 7251 3801
Morgan Bone
Mark Harris


The Capita Group Plc is a leading provider of integrated professional support
service solutions. The Group's service capabilities encompass customer services,
insurance services, human resource services, software services, systems and
strategic support and property services delivered to both public sector and
private organisations. With over 13,000 people at over 160 UK sites, Capita is
quoted on the London Stock Exchange with analysts' forecast revenues for 2001 of
£690 million. Capita became a FTSE 100 company in March 2000.

Capita currently delivers a unique customer contact service operation for the
BBC.  In 1998 Capita was awarded a 5-year contract to set up and administer the
BBC Information Service.  Capita is a frontline BBC partner handling all
unsolicited enquiries from viewers and listeners seeking further information or
commenting on broadcast material and handles solicited contacts generated by TV
and radio programmes.

Recent contract wins include the creation and administration of the new Criminal
Records Bureau certification service for the Home Office, the infrastructure set
up, management and development of the new national Connexions Card service for
16-19 year olds for the Department for Education and Skills (DfES) and the
administration and infrastructure transformation of Abbey National's general
insurance operations.

                      This information is provided by RNS
            The company news service from the London Stock Exchange