* Underlying pre-tax profit is calculated after adjusting for the effect of acquisitions and non-recurring items. A reconciliation together with more information on our financial performance and accounting policies is in the Financial Review included in this announcement. 

Serco on track for 15th year of growth:

• Strong organic growth
  - 42% of first half growth from existing contract base
  
• Record value of bids submitted at £4.7bn
  
• Continued success in winning contracts
  - Contracts signed totalling £400m
  - 62 new contracts awarded
  - Further 56 contracts successfully rebid or extended, maintaining 90% success rate
  - Appointed preferred bidder for contracts totalling a further £250m, including Skynet 5 for global military satellite communications for UK armed forces
  
• International growth continues
  - Awarded one of the Middle East’s first multi-activity outsourcing contracts from Dubai Ports, Customs and Free Zone Corporation
  
• Continuing visibility of earnings
  - 98% of 2002 forecast revenues already secured
  
• Forward order book of £6bn   

Kevin Beeston, Executive Chairman, said:
“We are on track for a 15th successive year of strong growth. At £6 billion our forward order book remains buoyant and our future earnings are highly visible. During the first half we submitted a record level of bids valued at £4.7 billion and are currently addressing a further £12 billion of opportunities. 

In the UK, the additional spending announced by the government in its Comprehensive Spending Review will further enhance our growth prospects; while our existing portfolio of international markets will generate a continuing flow of new opportunities. We are confident of achieving strong growth for the remainder of 2002, and for the longer term we anticipate sustained double-digit organic growth.”