On 20 December 2000 the Company acquired Quality Assurance Associates Limited (QAA) for a consideration of £2.55 million of which £1.55 million will be satisfied by new Serco Group plc shares.

QAA is an education and training consultancy firm providing services to central and local government in the UK.

Application has been made to the UK Listing Authority and the London Stock Exchange for the new 188,346 Ordinary 2p shares to trade on the London Stock Exchange and to be admitted to the Official list. Dealings are expected to commence on Friday 22 December 2000.