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Capita Group PLC (CPI)

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Tuesday 11 November, 2003

Capita Group PLC

Re Joint Venture

Capita Group PLC
11 November 2003

11 November 2003


             Leading UK and Indian companies form BPO joint venture

The Capita Group Plc ('Capita'), the UK's leading professional support services
organisation, has entered a new stage in its partnership with Mastek Ltd
('Mastek'), India's leading IT application outsourcing company.

Capita, which provides services that reach 33 million people in the UK each
year, and Mastek are forming a joint venture through the acquisition by Capita
of 60% of Mastek BPO Limited, a wholly owned subsidiary of Mastek Limited. The
company, which will be renamed Capita Mastek BPO Limited, will continue to
operate from its current facility in Thane. It will serve as a business process
outsourcing (BPO) delivery unit for both Capita and Mastek, focusing on back
office transaction processing.

Capita's Executive Chairman, Rod Aldridge, welcomed the development, which is
designed to meet the needs of Capita's private sector clients who are seeking
alternative service delivery models:

'We have listened to prospective customers, particularly in the financial
services sector, and have worked to develop a range of scalable and adaptable
outsourcing solutions that meet their individual needs. Our joint facility with
Mastek in India provides our clients with an extended range of service delivery
options. We have successfully worked with Mastek for a number of years and
believe that Capita Mastek BPO Ltd will hit the ground running as a new force in
this market. It combines both companies' complementary expertise and we both
benefit from a partnership with an established local presence and knowledge.'

Mr Ashank Desai, Chairman of Mastek Ltd commented:

'Mastek and Capita have enjoyed a strong partnership for eight years and this
development is a natural evolution of our relationship. We have worked jointly
with Capita on some of the most complex IT projects in the UK. We understand
each other well and work together as a successful team. The BPO joint venture is
a testimony to our partnership philosophy.'

'This new initiative in BPO brings together the strengths of both organisations.
Capita has strong UK based client relationships, an established sales and
marketing network, best of breed experience in the BPO space and world class
processes. Mastek's IT capabilities, well established local infrastructure and
know-how complement Capita's expertise. The real winners will be clients, who
will enjoy the best of both worlds.'

Capita's acquisition of 60% of the share capital of Mastek BPO Limited from
Mastek Limited is valued at approximately £285,000 (INR21.4 million) and is
subject to regulatory approval from FIPB and RBI.


For further information contact:

Capita Press Office: +44 870 2400 488

Investor Relations: Hitesh Danak, +91-22-28247893
Media: Sanjay Mudnaney, +91-22-28247745

Finsbury: +44 (0)20 7251 3801
Morgan Bone
Mark Harris
Anthony Silverman

About Capita:
The Capita Group Plc, is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 17,000 employees at more than 200
offices across the UK, Capita is quoted on the London Stock Exchange (CPI.L)
with forecasted revenues for 2003 of £1075 million.
In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland
Sunday Times Business Awards. Capita has won Management Today's Most Admired
Support Services Company Award in 2001 and 2002.

About Mastek:

Mastek, is a Rs. 379 cr., US $ 79 million (July 2002 - June 2003) publicly held,
global IT application outsourcing company with global operations, that delivers
cost effective quality solutions as per the customized requirements of Fortune
1000 organizations worldwide. With its principal offshore delivery facility
based at Mumbai, India, Mastek operates through 19 offices located in the US,
Europe, Japan and Asia Pacific regions. Incorporated in 1982, Mastek has been in
the forefront of technology, which along with proven methodologies and
processes, increase IT value generation to its customers through onsite and
offshore deliveries.

Mastek follows methodologies that generate substantial value to its customers by
reducing time-to-market and ensuring a high level of predictability in the time,
cost and quality of its projects. The company also focuses on enhancing value
for its customers by providing substantially superior IT solutions at a lower

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