28 March 2008

CAPITA INSURANCE SERVICES ACQUIRES LANCASTER INSURANCE SERVICES LTD

The Capita Group plc has today announced the acquisition of Lancaster Insurance Services
Ltd. The acquisition will add greater capacity and valuable new expertise to Capita’s insurance intermediary and administration business.

Lancaster Insurance Services has been acting as an independent intermediary for selected insurance since 1984 and specialises in providing classic car insurance alongside modern
vehicle, home and travel policies. The acquisition will bring Lancaster alongside the Capita
Group’s existing intermediary firm, BDML, which works with a similar panel of insurers to
Lancaster.

BDML specialises in personal insurance including motor, home, and pet insurance and
insurance for small and medium sized firms. It provides specialist support to a wide range of industry sectors, offering fully branded customer contact programmes on their behalf.
Services include the sale and administration of personal lines and SME insurance portfolios including the provision of quotations, issuing policy documentation, administering policies,
handling renewals and mid-term adjustments to policies. These services are typically
provided in the brand name of one of BDML’s business partners which include Admiral, esure
and Norwich Union.

Mark Townsend, Managing Director of BDML, said: “While Lancaster works with many of the
same major insurers as BDML, there is very little overlap between the products and
policyholders the two companies share, providing an ideal environment for the provision of additional products and services to both sets of customers. Between them BDML and
Lancaster can offer virtually every type of insurance required by both personal and SME
customers and the added functionality, broader expertise and economies of scale that the acquisition will produce will also make the new, enlarged business highly attractive to
insurance providers.”

Bill Godsell, Managing Director at Lancaster said: “Joining forces with Capita represents a
great opportunity for both our insurance industry clients and our staff. We are fully committed
to maintaining the focus that we have on specialist expertise and service excellence and being
part of Capita will allow us to further enhance the value we offer in these areas.”