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Capita Group PLC (CPI)

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Wednesday 17 November, 2004

Capita Group PLC

Capita acquires Brownsword

Capita Group PLC
17 November 2004





Capita acquires Brownsword and awarded Voice Risk Analysis Software license for
                                 public sector

*Brownsword acquired for £5 million; incorporating 10 year license to use
Advanced Validation Solutions (AVS) across insurance industry

*Separate 10 year license awarded by Digilog for Capita to use AVS exclusively
in public sector

Acquisition of Brownsword

The Capita Group Plc ('Capita') announces the acquisition of the entire share
capital of Brownsword Ltd, a leading provider of claims investigation services,
for a cash consideration of £5 million. Capita will also be assuming 
£3.5 million of debt. A deferred consideration of up to £5 million, dependent 
on achieving specific performance targets by 31 December 2006, will be paid in
March 2007. As part of the deal, Capita will gain an exclusive ten year license
to use Digilog's (1) Advanced Validation Solutions (AVS) incorporating Voice 
Risk Analysis (VRA) software in outsourced solutions for the insurance industry 
and for the wider financial services industry on a preferred supplier basis.

Brownsword provides a variety of services in a number of insurance market
sectors including motor, household and travel claims. The acquisition will add
further expertise and capacity to these existing service offerings within Capita
Insurance Services and, by deploying Digilog's AVS, will further enhance the
existing end to end policy and claims service.

Via Brownsword, Digilog's AVS has so far been piloted by 15 insurance related
companies on an outsourced basis. Of those who piloted the solution, 80% have
entered into an arrangement with Brownsword, recognising the significant
benefits of using AVS as an information validation process and Brownsword as a
service supplier. By analysing micro-changes in the voice, the VRA software is
used to assess risk in responses to questions and provide an initial indication
as to whether the information provided is valid or could be potentially
fraudulent. If the information supplied is valid, customers' requests can be
acted upon faster and more efficiently.

Brownsword's audited results to the year end 31st July 2004 reported an annual
turnover of £6 million and operating profits of £522,000. The business is 
acquired with net assets of approximately £290,000. Brownsword has over 100 
members of staff based in Manchester, Brentwood and Birmingham.

Digilog License 

The Capita Group Plc ('Capita') has today been awarded a ten year license by
Digilog, the exclusive distributor of Nemesysco technologies in the UK and
Ireland, to use its Advanced Validation Solutions (AVS) incorporating Voice Risk
Analysis Software (VRA) exclusively in the public sector in the above
territories. This license will enable Capita to provide public sector clients
with the ability to utilise Voice Risk Analysis software across their
operations, where appropriate.

Rod Aldridge, Executive Chairman, The Capita Group Plc, said, 'We are delighted
not only to have completed the acquisition of Brownsword, but also to have been
chosen as the exclusive provider of Digilog's solutions to the public sector in
the UK and Ireland. This represents a significant opportunity for us as we do
not currently use this software and associated techniques in the public sector
and we wish to explore with our clients the application of this powerful
solution to support entitlement and anti-fraud programmes further. Together, the
acquisition and license mean that we are well placed to continue to deliver
innovative services and efficiencies across a number of markets in the public
and private sectors.

'We welcome all the Brownsword staff to the Group and recognise the part they
will play in adding further value to our clients across the insurance and
finance sectors.'


(1) Digilog have intellectual property rights for Voice Risk Analysis software
in UK and Ireland as licensed by Nemesysco Ltd.


                                      Ends

Notes to Editors:
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
million.

Further information on The Capita Group Plc can be found at: www.capita.co.uk.

For further information please contact:
Capita Press Office 0870 2400 488

Capita Insurance Services is the UK's leading provider of business support
services for insurance, offering professional services, operational solutions
and strategic partnerships for Insurers, Brokers, Affinity Groups, Corporate,
Government and the London Markets. From claims administration, fraud management
and technical adjusting to fully managed operational solutions, the company
employs over 4,000 staff, operating from a nationwide network of business
centres.

Brownsword Ltd is the UK's leading provider of motor claims investigation
services for the insurance industry acting on behalf of in excess of 20 insurers
and many solicitors.

The services of Brownsword embrace the investigation of road traffic accidents,
vehicle theft, debt recovery, fraud and general claims handling. Brownsword
has received industry wide recognition for being at the forefront of providing
an outsource solution for the Digilog Voice Risk Analysis process.

Digilog UK Limited, formed in 1999, is the exclusive distributor of Nemesysco
technologies in the UK and Ireland. DigiLog has been instrumental in introducing
this cutting edge technology within its Advanced Validation Solutions, designed
for the risk assessment of conversation based transactions such as loan
applications and insurance claims.

These unique and proven solutions feature Nemesysco's leading edge TiPi and RA
Voice Risk Analysis (VRA) technology at their heart together with a careful
blend of contemporary methods and skills that include:

a)     Applied Psychology
b)     Conversation Management
c)     Advanced Questioning Skills
d)     Narrative Integrity Analysis
e)     Progressive Training

This powerful combination of 21st Century solutions is highly capable of
delivering significant cost benefit to the commercial world and greatly enhances
loss prevention efforts in all financial centres that require accurate,
real-time, decision support tools for validating transactions.

www.digilog.org


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