Serco Group plc

Dolphin House, Windmill Road, Sunbury-on-Thames, Middlesex TW18 7HT United Kingdom T +44 (0)1932 755900 F +44 (0)1932 755 854

Serco Group, the international provider of management services to government and industry has today announced its preliminary results.

The Company has also announced board changes which will take place in 2002. Richard White will retire as Executive Chairman. Kevin Beeston will succeed Richard as Executive Chairman having been Chief Executive for 3 years. Christopher Hyman, currently Finance Director will replace Kevin as Chief Executive.

In a separate announcement on RNS, the Company has announced an international placing of up to 39.5 million new ordinary shares to raise approximately £120 million to fund future growth.

Preliminary results for the year ended 31 December 2001 2001 2000

Turnover – including joint ventures £1,141.2m £957.9m Up 19.1%

Profit before tax – pre goodwill amortisation £46.4m £37.7m Up 22.9%

Earnings per share – pre goodwill amortisation 8.46p 6.78p Up 24.8%

Dividend per share 1.86p 1.63p Up 14.1%

· 120 new contracts awarded

· 140 contracts successfully rebid or extended

· New business won totalling £1.4 billion

· Order book up from £5.8 billion to £6.2 billion

· New bid win rate over 70%; rebid retention rate over 90%

· Strong growth in continental Europe with new awards in Italy, Germany, Belgium and Sweden

· £69.4 million acquisition of AEA Technology’s consulting business strengthens position in

science

· New education business established with £35 million first-year turnover including contracts in

Bradford and Walsall

· Started a 10- year, £160 million PFI contract to design, build and operate England’s national

Traffic Control Centre

· Preferred bidder status for two 12- year leisure contracts with Manchester City Council

· Major contracts renewed include the National Physical Laboratory, Docklands Light Railway

and three European Space Agency contracts

· February 2002 – As part of Paradigm, selected as preferred bidder for Skynet 5 – Serco

contract worth £220 million.

Richard White, Executive Chairman, said:

"This represents a very strong performance. We maintained excellent growth in sales and

profits, exceeding the results targeted at the start of the year.

Our forward earnings are highly visible and our margins have continued to grow. We remain a

highly predictable business. We have already secured 82% of our forecast turnover for 2002

and a significant amount beyond and continue to anticipate strong growth. And there is no let-

up in new prospects: we are currently evaluating contract opportunities worth a total of some

£15 billion."