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Serco selected as preferred bidder for Prison Contract in New Zealand valued at approximately NZ$400m

Date: 14 Dec 2010

Serco Group plc (Serco), the international service company, announces today that it has been selected as preferred bidder for the Prison Management Contract for the Mt Eden and Auckland Central Remand Centre (ACRP) prison in Auckland, New Zealand.

The ten-year contract, which is due to be signed in early 2011, is valued at around NZ$400m (approximately £190m). It will commence operation fully by August 2011 and include: prison custodial management; security; prisoner welfare, rehabilitation and reintegration programmes and activities; infrastructure management; and logistics.

The prison is a multi-building facility that will accommodate 966 male prisoners, including both remand and sentenced prisoners, delivering a critical central hub for the Northern Region of the New Zealand Department of Corrections. The prison represents an essential facility for New Zealand's largest city, Auckland.

Under the contract, Serco will deliver prisoner rehabilitation and reintegration programmes to reduce the impact of reoffending, establish units to reduce risks for newly arrived remand prisoners, and will establish a Maori Unit for the accommodation of suitable young Maori men to support our strong emphasis on addressing specific cultural needs of Maori prisoners.

Serco has been successfully delivering services to governments across the world for almost fifty years. We have steadily built our position in the southern hemisphere's justice sector since commencing at Acacia Prison in Western Australia in 2006 and then at Borallon Correctional Centre in Queensland, Australia in 2008.

Christopher Hyman, Chief Executive of Serco Group plc, said:

"We welcome the opportunity to partner with the New Zealand Government to realise the full potential of the Auckland prison particularly through our focus on reducing re-offending. Serco's solution will meet the Government's, the Department's and key stakeholder's needs, especially Maori and their whanau and will deliver real value for money while maintaining the highest levels of safety and security. This contract will further strengthen our international platform from which we continue to deliver essential services for our customers."

- Ends -

For further information please contact Serco:
Jill Sherratt, Interim Head of Investor Relations T +44 (0) 208 334 4122
Dominic Cheetham, Director of Corporate Communications T +44 (0) 208 334 4334
Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4388

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Last Updated: 14 Dec 2010