17 Feb 2006

The Capita Group Plc (“Capita”) announces that it has been named as preferred supplier in the final stage of the re-tender process for the contract to administer miners’ personal injury liability claims on behalf of the Department of Trade and Industry (“DTI”). Subject to contract, the deal is expected to be worth £120 million over a three year period to 31 July 2009, with an option to extend.

The claims are with respect to disability caused by working underground in British Coal mines. The contract primarily concerns the processing of claims in regard to COPD (Chronic Obstructive Pulmonary Disease) and VWF (Vibration White Finger). This is one of the Government’s largest uncapped liabilities, estimated at around £7 billion, with nearly £3 billion having been paid out to date.

Rod Aldridge, Executive Chairman, the Capita Group Plc commented:

“We are extremely pleased to have been named preferred supplier in the DTI’s contract re-tender process. This is testament to the successful delivery of the existing contract over the past two years and recognises our ability to handle claims effectively and sensitively, whilst maintaining rigorous eligibility procedures. It is also further confirmation of the expertise of our team at Capita Insurance Services, which is the largest employer of technical liability claims handlers in the UK outsourcing market.”

Capita assumed management of the initial contract in February 2004.