RNS Number:3194J
Capita Group PLC
28 March 2003
                                                                   28 March 2003


   CAPITA SIGNS #62 MILLION CONTRACT WITH DfES TO ADMINISTER TEACHERS PENSION
                         SCHEME FOR FURTHER SEVEN YEARS


The Department for Education and Skills ("DfES") has signed a contract
appointing Capita Group Plc ("Capita") to administer the Teachers' Pension
Scheme, the second largest pension scheme in the country.  The contract is worth
#62  million over the next seven years, effective from 1 October 2003.  Capita's
specialist pensions administration business, Capita Hartshead, has administered
the Teachers' Pension Scheme since 1996.

Commenting on the award, David Miliband, School Standards Minister, said: 
"Capita's proposal offers value for money and high quality service for members,
pensioners and employers.  We look forward to Capita building on what it has
achieved throughout the present contract.  The re-appointment will be welcomed
by the teacher unions and the National Employers' Organisation who see real
benefits for their members in the Capita proposal."

Rod Aldridge, Executive Chairman of Capita, said: "Our selection, once again, by
the DfES, demonstrates that we are a partner who can deliver continuous service
improvement and modernisation. We look forward to working with the DfES to
continue to provide a high quality service and to build on the service
improvements we have achieved over the past seven years, keeping pace with
legislative change and the increasing expectations of members, pensioners and
employers.  Just as the initial contract was a strategic milestone for Capita
back in 1996, again today it is of strategic importance as we become a
significant force in the Life and Pensions market."

Throughout the course of the initial contract, Capita undertook key step changes
to the service to increase efficiency and raise quality.  Processes were
re-organised, streamlined and automated whilst more flexible, responsive
customer access services were introduced.  Staff were trained to become
multi-skilled and a clear focus was placed on staff motivation and management.

Further modernisation and innovation will be introduced throughout the new
contract.  The service will be reshaped and a new technology platform introduced
to provide flexibility to meet the changing needs of the stakeholders,
e-government, business targets and future policy initiatives and legislation.

Mike Addenbrooke, Managing Director of Capita Hartshead, commented: "The
pensions environment is moving into a further period of change and, as the
largest independent pensions administrator, Capita is able to bring experience
to bear to assist the Department to respond effectively.  The service
enhancements we will undertake will provide truly modern access and support for
stakeholders and a service that reflects wider industry standards."

Migration of remaining legacy systems to Capita's wholly owned technology suite,
Hartlink, will provide a flexible and extendable platform to underpin change and
facilitate service transformation.  This robust and proven technology will
enable Capita to meet individual stakeholder needs and deliver flexible service
access.  Further automation of work distribution and processes alongside the
embedding of verification routines and fully auditable case tracking will drive
through additional service efficiencies.  The new service platform is capable of
supporting new technologies such as WAP, SMS text messaging, 3G communications
and, into the future, interactive digital television (iDTV) and their associated
work methodologies offering huge benefits of flexibility and efficiency for the
future.

                                     -Ends-


For further information:

The Capita Group Plc                           Tel           020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Press Office                                   Tel           020 7544 3141

Finsbury                                       Tel           020 7251 3801
Morgan Bone
Mark Harris


Notes to Editors:

The Capita Group Plc, is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 17,000 employees at more than 200
offices across the UK, Capita is quoted on the London Stock Exchange (CPI.L),
and is a constituent of the FTSE 100, with revenues for 2002 of #898 million.

Capita's pensions administration business operates under the name of Capita
Hartshead to reflect the major stake in the pensions' administration market
formerly occupied by Hartshead Solway - whose sole business is related to
pensions administration.  Capita Hartshead has been commended for pensions
administration in the recent prestigious Pensions Management Awards.

For the second consecutive year, Capita has won Management Today's Most Admired
Support Services Company Award.  Further information on Capita Group can be
found at:  www.capita.co.uk


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