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Capita Group PLC (CPI)

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Thursday 22 July, 2004

Capita Group PLC

Contract Win with Salford

Capita Group PLC
22 July 2004

22 July 2004

                         AS PREFERRED STRATEGIC PARTNER

The Capita Group Plc announced today that it has been selected by Salford City
Council as its preferred strategic partner to contribute to the regeneration of
the City through a programme of continuous service improvement, development
planning and enhancements across property, engineering and highways services 
and associated support services. With a service contract estimated to generate
revenues to Capita of £250 million over an initial contract period of 12 years,
Salford City Council and Capita in association with Morrison (part of AWG Plc)
have joined together to form a new joint venture. The JV will deliver services
to the Council and create opportunities for further business growth for the
partners by delivering services to additional external organisations.

All 420 employees within the Council's Development Services Directorate will
continue to be retained by the City Council and will be seconded to the new
joint venture and be placed fully under the JV management. This particular 
model has been adopted to meet the specific circumstances and growth 
opportunities of the partnership. It will enable all staff to work closely 
together, delivering flexibility of workforce from day one to match the 
organisation's capacity requirements as it develops. Capita will work closely 
alongside Salford City Council delivering property, engineering and highways 
design and professional maintenance services through its property consultancy 
business, Capita Symonds. Morrison will support both partners, providing blue 
collar highway construction services.

Salford City Council's lead member for development services, Councillor Derek
Antrobus commented, 'Salford City Council has a commitment to excellence,
founded on core values of embracing customer and community focus through
multi-disciplinary working and a belief in quality services. With Capita we are
partnering with a company that shares our commitment and values and has a 
desire to build on the excellence of Salford's existing services.'

Rod Aldridge, Executive Chairman of The Capita Group commented, 'We are
delighted to be working with Salford City Council and its award winning
Development Services Directorate. This agreement demonstrates our continued
commitment to the North West. The combination of the Council's highly skilled
and experienced workforce with our own provides a strong platform upon which to
build a successful joint venture. Together we are creating innovative working
arrangements that will ensure improved performance against key national and
local indicators, meeting the Council's core objectives of continuously
improving its service to the community. Our broad experience of delivering
services across local authorities and our track record of growing our strategic
partnerships, especially in Blackburn with Darwen, Cumbria, Derby and South
Wales, positions us well to successfully develop this new partnership.'


For further information please contact:

Capita Press Office 0870 2400 488

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 22,000 employees at more than 200
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE 100 with revenues for 2003 of £1,081

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 Plc can be found at:

Capita Symonds, part of The Capita Group Plc, provides a broad range of
professional services covering the design, engineering, construction,
infrastructure and property markets. With 2,700 staff in 40 UK offices and a
projected turnover of £160m Capita Symonds is one of the UK's newest
multidisciplinary consultancies with a comprehensive and diverse project

Capita Symonds is the result of the merger between Capita Property Consultancy
and Symonds Group and was officially launched on 1st June 2004.

Further information on Capita Symonds can be found at:

Salford City Council is the local authority for a 35 sq mile metropolitan
district to the west of Manchester city centre. With around 11,000 employees
serving a population of around 215,000 people, the authority is the city's
biggest employer. The development services directorate's 420 staff provide a
range of professional services to the organisation to do with managing,
maintaining and developing land and buildings in the city, with an annual budget
of around £34 million.

Further information on the city and the city council can be found at

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