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Capita Group PLC (CPI)

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Monday 16 February, 2004

Capita Group PLC

Re Contract

Capita Group PLC
16 February 2004

16th February 2004

                   Capita to Manage Miners' Liability Claims
           Contract ensures Capita's place as the largest outsourced
                        claims handler across all claims

The Capita Group Plc ('Capita') announced today that it is to manage the
contract to administer all miners' personal injury liability claims on behalf of
the Department of Trade and Industry ('DTI') with respect to certain health
conditions caused by working underground in British Coal mines. This is the
Government's largest uncapped liability, estimated at £7 billion, with nearly 
£2 billion having been paid out to date. The contract will run until 31st July 2006.

It is estimated that revenues of £125 million will be generated over the term of
the contract. Over 1,250 employees will transfer to Capita from Aon the previous
supplier, and Capita is paying £8 million in cash to Aon for the underlying
contract infrastructure and other assets. Capita was selected, after a
competitive process and due diligence, to run the contract which primarily
concerns the processing of claims in regard to chronic obstructive pulmonary
disease and vibration white finger.

Capita's Executive Chairman, Rod Aldridge, commented: 'This announcement builds
on the expertise of our team at Capita Insurance Services and establishes the
company as the largest employer of claims handlers in the UK. Our role in
delivering the contract is to ensure claims are handled effectively and
compassionately, whilst maintaining rigorous eligibility procedures. In view of
the scale of these liability schemes, Capita's extensive experience of the
industry and expert resources position us well to manage this contract and
provide flexibility for further additional work. Our focus will be to continue
providing an effective service to the people suffering from these diseases.'

The service is currently administered from four locations, all of which will
transfer to Capita. The main operation is based in Sheffield with further sites
in Cardiff, Manchester and Edinburgh, predominantly near to mining communities.


Notes to Editors:

Following the high-profile court rulings of 1997 and 1998, the liabilities of
British Coal were transferred to the DTI on 1st January 1998 under the terms of
the Coal Industry Act. The DTI is responsible for running these two major
personal injury compensation schemes, representing the largest personal injury
schemes in British legal history. More than 410,000 claims have been made by
former miners relating to respiratory disease resulting in £974 million being
paid in compensation. One hundred and seventy thousand vibration white finger
claims have been made, with £923 million paid in compensation.

For further information please contact:

The Capita Group Plc                         +44 (0)207 799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Press Office                                 +44 (0)870 2400 488

Finsbury                                     +44 (0)207 251 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, 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 2003, for the third year running.

Further information on The Capita Group can be found at:

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