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Capita Group PLC (CPI)

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Tuesday 30 November, 2010

Capita Group PLC

Contract expansion with Birmingham CC


30 November 2010

       BIRMINGHAM CITY COUNCIL EXTENDS AND EXPANDS CONTRACT WITH CAPITA        

The Capita Group Plc ("Capita") announces that Birmingham City Council has
agreed to extend and expand its existing contract with Capita, which is
delivered through Birmingham City Council and Capita's joint venture
partnership, Service Birmingham. The original contract to provide ICT and
contact centre services has been extended by five years to March 2021.
Additionally, Service Birmingham will deliver the Council's revenues service
for a period of 10 years from 1 April 2011. 152 council revenues staff will
transfer to Service Birmingham under TUPE regulations. The contract extension
and expansion is worth approximately £300 million to Capita.

Service Birmingham was created in 2006 to provide ICT and Business
Transformation to the Council for a period of 10 years with the option to
extend for a further five years.

The extension and expansion of the partnership will allow Service Birmingham to
deliver further service improvements and efficiencies that will generate £55
million in savings for the Council over the life time of the contract, on top
of the £69 million already being delivered in the existing contract.

Paul Pindar, Chief Executive, Capita, said: "We understand the challenges that
the public sector is facing in delivering efficiency savings and also improving
services. Through this long-term partnership between Service Birmingham and
Birmingham City Council, continuing service improvements and cost efficiencies
have been achieved. We are delighted Birmingham City Council has agreed to
extend this contract and we will continue to work together to build upon our
achievements to date and deliver value to the Council and its citizens."

Cllr Randal Brew, Cabinet Member for Finance at Birmingham City Council, said:
"At a time when we are facing an unprecedented financial challenge, we need to
focus on driving efficiencies and getting value for money. This deal represents
an excellent opportunity to achieve both. We have a successful relationship
with Capita through Service Birmingham and we are confident that extending and
expanding this partnership will mean we are able to continue to modernise
services and meet the challenges we are facing."

                                    -Ends-                                     

For further information please contact:

Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Tel: 020 7799 1525

Media enquiries:
Caroline Mooney
Capita press office
Tel: 0207 654 2152 or 020 7654 2399 (out of hours)

Notes to editors:

The Capita Group Plc is the UK's leading provider of BPO and integrated
professional support service solutions. With 36,800 people at more than 250
sites, including 60 business centres across the UK, Ireland, the Channel
Islands and India, the Group uses its expertise, infrastructure and scale
benefits to transform its clients' services, driving down costs and adding
value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE100 with revenues for 2009 of £2,687 million.

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