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Capita Group PLC (CPI)

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Monday 02 December, 2002

Capita Group PLC

Acquisition

Capita Group PLC
02 December 2002

2 December, 2002



       Capita widens its portfolio of Insurance Administration services
                  through acquisition of Cost Auditing Ltd



The Capita Group Plc ('Capita'), one of the UK's leading providers of
professional support services, has acquired Cost Auditing Limited ('CAL'),
enhancing Capita's portfolio of specialist services to the Insurance Services
sector.



Under the terms of the agreement, Capita has acquired Cost Auditing Holdings Ltd
and its subsidiary, CAL (the main trading entity), for an initial consideration
of £4.9 million to be satisfied in cash.  An additional deferred maximum payment
of £3 million cash dependent on future performance will be payable on 31st March
2005.  Capita will also assume bank borrowings of £4.3 million.



Handling in excess of 30,000 claims per year, London based Cost Auditing Ltd is
one of the UK's leading providers of legal-cost auditing services for the
Insurance Services sector.  The core activity of the business is the auditing of
bills submitted by claimants' lawyers, including analysis of staff
appropriateness, hours-billed and hourly-rates, and other disbursements.  The
business returned a profit of £1.2 million on sales of £4.2 million in the year
to 30th April 2002.



Commenting on the announcement, Rod Aldridge, Executive Chairman, The Capita
Group Plc said:



'The acquisition of CAL extends Capita's integrated range of support services
for the Insurance Sector, underlining our interest in this market place and our
focus on delivering solutions that assist insurers to reduce their processing
costs whilst enhancing their customer services.  CAL's extensive customer base,
including relationships with AIG, Provident Financial and Royal & SunAlliance,
complements and widens Capita's base of customers in the UK Insurance industry.'



Under the terms of the agreement, two of the founders, Simon Edwards and Ian
McLuskie, will transfer to Capita along with 53 staff.



                                     -Ends-



For further information:



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



Press Office                           020 7544 3141



Finsbury                               020 7251 3801
Morgan Bone
Mark Harris





The Capita Group Plc, is the UK's 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 the public
and private sector. With more than 17,000 employees at over 200 UK sites, Capita
is quoted on the London Stock Exchange (CPI.L / CPI LN) and is a FTSE 100
company with estimated revenues for 2002 of £895 million. For further
information, visit www.capita.co.uk.






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