Confirmation of major new contract in the US

Confirmation of major new contract to support US healthcare eligibility 5 August 2013 Serco Group plc (Serco), the international service company, confirms the awardof a new contract by the United States Department of Health and Human Services'Centers for Medicare & Medicaid Services (CMS) to provide processing supportfor new health benefit exchanges. Serco will provide and manage labour toreview, verify and process applications on a `cost-plus-fixed-fee' basis. Thecontract, which is now in effect, has a one-year base period valued atapproximately $115m with further four one-year options. Including all potentialoption periods and optional tasks, the contract has a potential total contractvalue of approximately $1.25bn. The Patient Protection and Affordable Care Act introduced a series of consumerchoices and insurance competition through a Federally Facilitated Marketplace(FFM). The exchange is a state-based marketplace that accepts applications anddetermines eligibility for applications, as well as participation and enrolmentinto affordable health insurance and insurance affordability programs. TheAffordable Care Act directs CMS to establish and operate marketplaces forstates that do not elect to establish their own. Serco will manage approximately 1,500 staff in the US that will support CMSwith the routing, automated processing, reviewing, and troubleshooting ofapplications submitted for enrolment into a Qualified Health Plan. Serco willalso provide records management and verification support. The contract award builds on Serco's strong capabilities in records managementand processing for the US Government, which include the classifying of patentapplications for the US Patent and Trademark Office and the processing of visaapplications at the US Department of State's National Visa Center. Christopher Hyman, Chief Executive of Serco Group plc, said: "We are delightedto be awarded such an important contract to support the Affordable Care Act inthe United States and our Americas division looks forward to working with theCenters for Medicare & Medicaid Services. We have extensive experience inrecords management and processing for the US Government, and following theaward of the Virginia transport management contract earlier this year we aremaking excellent progress in our strategy to further broaden the portfolio." Ends For further information please contact Serco: Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227 Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226 About Serco Serco is a FTSE 100 international service company, which combines commercialknow-how with a deep public service ethos. Around the world, we improve essential services by managing people, processes,technology and assets more effectively. We advise policy makers, designinnovative solutions, integrate systems and - most of all - deliver to thepublic. Serco supports governments, agencies and companies who seek a trusted partnerwith a solid track record of providing assured service excellence. Our peopleoffer operational, management and consulting expertise in the aviation, BPO,defence, education, environmental services, facilities management, health, homeaffairs, information and communications technology, knowledge services, localgovernment, science and nuclear, transport, welfare to work and the commercialsectors.

More information can be found at www.serco.com