Preliminary Announcement of Results for the Year Ended 31 March 2009

LONDON - RESULTS SUMMARY

Continuing Operations

2009 2008 Change Turnover * GBP 1,095.7m GBP 845.4m +30% Revenue excluding joint ventures GBP 1,023.6m GBP 730.9m +40% Underlying profit before taxation ** GBP 86.6m GBP 61.6m +41% Adjusted earnings per share *** 33.9p 24.1p +41% Profit before tax (excluding exceptional GBP 60.5m GBP 45.5m +33% items) Profit before taxation GBP 32.2m GBP 45.5m -29% Cash Conversion**** 105% 98% Full year dividend per share 14.4p 13.1p +10%

* Includes share of turnover from equity accounted joint ventures and associates.

**Underlying profit before taxation (and underlying operating profit) excludes amortisation of intangibles arising from business combinations (GBP23.0m; 2008: GBP9.9m), share of joint venture taxation (GBP2.3m; 2008: GBP5.0m), fair value movements arising from derivatives (GBP0.8m; 2008: GBP1.2m.) and exceptional items (GBP28.3m; 2008: GBPnil).

***Before exceptional items, fair value movements arising from derivatives and intangible amortisation arising from business combinations.

**** Cash Conversion: operating cash as a percentage of underlying operating profit.

The above definitions apply throughout this document. Highlights - Turnover up by 30% - Underlying profit before tax up 41% - Closing order book GBP4.5bn (up 12% from last year) - Strong cash conversion (105%) - GBP7m p.a. planned savings from restructuring mf… cont…

Outlook

VT Group Chairman, Michael Jeffries, said: “We are in a good position due to excellent visibility of earnings and strong operating cash flow, an expanding order book and robust balance sheet. The Board remains confident about the current year and beyond.”

Notes to Editors

1) VT Group is an engineering-based support services company providing services to Central and Local Government. The Group employs over 12,000 people and has its Headquarters in Southampton, UK, with operations from various locations, primarily in the UK and USA. VT is also a Joint Venture partner with BAE Systems in BVT Surface Fleet Limited, which includes its shipbuilding and naval support businesses. VT will exit this business in the second half of 2009. 2) For the year ended 31 March 2008 VT Group reported turnover for its continuing operations of GBP845 million and Group Underlying Profit Before Tax of GBP61.6 million. The order book for continuing operations was around GBP4.0 billion as of the end of March 2008. 3) VT operates in a wide range of markets including defence, education, secure communications, waste and nuclear services, providing services focused on: - Critical asset management - Facilities management - Logistics of people and equipment - Education and training - Design, procure and build 4) Going forward, VT Group’s services businesses will consist of three operating segments - Defence, Government and Critical Services in the UK and VT Group Inc in the US. The operations of these segments will be as follows: 5) 1. Defence will be responsible for managing and strengthening our relationship with the UK MoD 2. Government and Critical Services will manage and develop our non-defence Central and Local Government relationships. 3. VT Group Inc. will concentrate on growing our work with the US Department of Defense (DoD). mf… cont… 6) Further information about VT Group, its services and products can be found at www.vtplc.com.

CHAIRMAN’S STATEMENT

2009 performance

It has been another excellent year for the Group’s Services businesses, with all divisions producing good results as we focus increasingly on this sector. We have extended our earnings visibility, with the Services order book increasing by 12 per cent to GBP4.5 billion at the year end (2008: GBP4.0 billion). We are in a strong position to take the Group forward to become a pure Services business as we prepare to exit the shipbuilding joint venture, BVT Surface Fleet.

Turnover from continuing operations increased by 30 per cent in 2009 to GBP1,096 million (2008: GBP845 million). Underlying profit before taxation improved by 41 per cent to GBP87 million (2008: GBP62 million) with the corresponding adjusted earnings per share improving by 41 per cent to 33.9p (2008: 24.1p). Operating cash conversion from continuing operations during the period was 105 per cent (2008: 98 per cent).

This performance has enabled the Board to recommend a final dividend of 10.5 pence, giving a total dividend for the year of 14.4 pence per share, an increase of 10 per cent over last year.

Our plans to exit the shipbuilding and naval support joint venture, BVT Surface Fleet, subject to the approval of VT Group’s shareholders and other regulatory bodies, will make this year an historic one for the Group, bringing to an end nearly 150 years of shipbuilding. The exit from the joint venture will provide us with opportunities, both acquisitive and organic, to grow our higher value, engineering-based Services businesses. The decision to exercise the put option in BVT will give the Group a strong balance sheet in the current economic climate.

Our Services businesses have all contributed to the progress of the Group with VT Communications seeing an increase in profit margins for the year and VT Education and Skills showing turnover and profit growth driven by the acquisition of VT Flagship in the year and successful contract wins in their training business. VT Support Services benefited from the start of our two major defence contracts, the Future Strategic Tanker Aircraft (FSTA) and the Military Flying Training System (UKMFTS) which both contributed to organic turnover and profit growth. VT Services Inc saw increases in profit and margins helped by the nine month contribution from VT Aepco.

In preparation for the exit from shipbuilding, we have carried out a detailed review of the structure of the Group, which will enable us to maintain our leading position in delivering high value added services to customers. Going forward the Group will be organised into three operating segments, Defence, Government and Critical Services and VT Group Inc.

People

In March, Peter McIntosh announced his intention to step down from the Board on the completion of the exercise of our put option in BVT Surface Fleet. We would like to thank Peter for his significant contribution to the successful growth of our business, in a VT career spanning 18 years in shipbuilding and ship maintenance. We would also like to thank him for supporting the Ministry of Defence when on secondment as Chief Executive of the Carrier Alliance, at a critical stage of that project’s development. We wish Peter well in his future career.

As a result of organisational changes in the Group, Group Executive Committee members Doug Umbers and Jo Robbins have also decided to leave VT. Doug joined VT in 1998 and has been Managing Director of VT Communications for the past seven years. Jo has been Human Resources Director since November 2004. Both have made important contributions to the Group’s expansion in recent years and we wish them well in the future. The reorganisation also means new roles for John Davies and Simon Withey who become Group managing directors, with John responsible for our UK Defence business and Simon for Government and Critical Services.

As part of our strategy to focus on the next stage of our growth in our US business, we have appointed David Dacquino as Chief Executive of VT Services Inc. David has considerable experience of working in technical support services in the US defence sector and joined VT from Raytheon Corporation, where he was Vice President, Integrated Support Solutions, at Raytheon Technical Services Company. Before joining Raytheon, he spent 20 years with Lockheed Martin.

During the year we conducted our first ever Group-wide survey of employees. This has covered subjects such as how employees feel about working for VT as well as their views on the workplace, communications, development opportunities, reward, recognition, leadership and culture.

The survey response rate of 65 per cent and overall satisfaction rating of 78 per cent compared very favourably to external benchmark comparisons. As a result of the survey, and the feedback from business units and employee working groups, we are implementing a series of improvements over the coming year.

Being Passionate about People is one of our core values which continues to be an important driver for the Group. We know that our success is down to the commitment and quality of our employees.

Outlook

The next year will be one of opportunity as VT Group moves from its shipbuilding roots to become a pure Services business. We believe that our new focus will provide us with a more stable business with greater long term visibility, financial flexibility and better prospects for growth. We will concentrate on expanding our existing businesses organically and, where appropriate, through acquisition to strengthen our offering to existing customers and provide new capabilities.

Reorganising the business to create a more customer focused structure will help us improve our relationships with customers and create opportunities to add extra work streams to current activities. The new structure will also help us as we concentrate on renewing and extending several of our existing contracts.

We are in a good position due to excellent visibility of earnings and strong operating cash flow, an expanding order book and robust balance sheet. The Board remains confident about the current year and beyond.

OPERATIONAL REVIEW

VT SUPPORT SERVICES

31 March 2009 2008 GBPm GBPm Turnover GBP 410.1m GBP 293.0m Underlying Operating profit GBP 35.9m GBP 26.6m Margin 8.8% 9.1%

What we do

VT Support Services (VTSS) operates in the defence, emergency and commercial sectors, delivering business-critical services through the provision and support of assets. We also offer complex engineering solutions in the nuclear and waste-to-energy sectors.

Highlights

2008/2009 saw significant growth in both turnover (40%) and underlying operating profit (35%), complemented by order book growth arising from extensions to existing contracts and major contract wins.

- Up to GBP3bn UK Military Flying Training System contract award and initial delivery - Delivery of Future Strategic Tanker Aircraft initial milestones - GBP100m New Dimension contract award and initial delivery - GBP160m Light Aircraft Flying Task award - GBP40m extensions of Bordon and Arborfield contracts

UK Military Flying Training System (UKMFTS): June 2008 saw the award of a 25-year contract for the UK Military Flying Training System to Ascent, our joint venture with Lockheed Martin UK. Ascent, as the Ministry of Defence’s training system partner, will now train all UK military aircrew including fast jet, rotary wing and multi-engine pilots. VTSS has started work on the initial package for the construction of a training school and maintenance facility at RAF Valley, Wales, in support of advanced jet training.

Future Strategic Tanker Aircraft (FSTA) programme: VTSS has successfully completed early milestones in the construction of facilities at RAF Brize Norton to support the A330 tanker aircraft.

New Dimension long term capability contract: We made further advances in the fire sector with the award and successful implementation of the Government’s 16-year (GBP100m) contract in support of UK civil resilience.

Light Aircraft Flying Task: VTSS signed a GBP160m contract to deliver initial military flying training to all three armed forces over a 10 year period. This expands current activities to deliver up to 57,000 flying hours per year through the provision of aircraft, associated support and instructors.

Training at Bordon and Arborfield garrisons: We secured further extensions to our Bordon and Arborfield training and support contracts until 2011, at a value of more than GBP40m.

Having won the Training, Maintenance and Support Services (TMASS) contract in 2008, we successfully completed implementation, and commenced delivery of, training and support activities to the British Army at Bovington Garrison.

2008/9 also saw the successful implementation of the Sea King Integrated Operational Support (SKIOS) contract, with VTSS now maintaining the Search and Rescue Sea King fleet across the UK and in the Falklands.

AirKnight, our joint venture with Lockheed Martin UK, is now one of only two remaining bidders for the UK’s multi-billion pound Search and Rescue (Helicopter) (SAR-H) programme. A preferred bidder decision is anticipated in late 2009.

We have further consolidated our position in the emergency services sector by securing support contracts for the Metropolitan Police Service’s 250 territorial support vehicles. This supplements our existing support of their fleet of cars, motorbikes and other vehicles.

VT Nuclear Services has restructured operations to expand beyond our traditional nuclear waste and decommissioning market and reduce costs. We have secured two key framework contracts with the Nuclear Installations Inspectorate, to support the licensing of new reactors in the UK; and we have a framework agreement with British Energy to provide engineering support to their operating plants.

VT Environmental Engineering has substantially agreed commercial terms on a GBP750m contract with Wakefield Metropolitan District Council for the design, build and operation of waste facilities in Wakefield over 25 years. Planning consent has been achieved for the 13-acre site at South Kirkby, which will accommodate the main facility, and for the transfer loading station in Wakefield. Contract start is anticipated in the first half of 2009/10 subject to financing.

Going forward

While the defence sector continues to experience operational and budgetary pressures, VT, as the MoD’s highest ranked supplier, remains strongly positioned to secure the additional outsourcing opportunities we anticipate will now arise. Similarly, financial pressure in the emergency services and airline sectors are likely to act as a catalyst for further outsourcing opportunities, and will drive consolidation of customer vehicle fleets.

We believe that activity in the nuclear services market, particularly related to the UK new build programme, will start to accelerate over the next 18 months. We also remain confident that the waste-to-energy market will grow substantially as the urgency to reduce landfill increases.

VT EDUCATION AND SKILLS

31 March 2009 2008 GBPm GBPm Turnover GBP 267.3m GBP 203.8m Underlying Operating profit GBP 23.6m GBP 13.5m Margin 8.8% 6.6%

What we do

VT Education and Skills (VTE&S) is the UK’s biggest provider of education and training. Our activities include supporting schools, providing work-based training and supplying training solutions and integrated support services to the Royal Navy.

Highlights

2009 was a year of strong performance and growth for VTE&S. Turnover increased 31% and underlying operating profit by 75%.

- Integration of VT Flagship, following acquisition of remaining 50 per cent share from BAE Systems - Strong trading performance of training, including contract wins with VW Group, BMW Group and British Energy - Opening of first school under our Lewisham ‘Building Schools for the Future’ contract - Implementation of Waltham Forest school improvement programme

Integration of Flagship: We completed our acquisition of the remaining 50 per cent share of Flagship from BAE Systems on 1 July 2008. This made VTE&S the largest provider of education and training in the UK.

Strong performance in vocational training: An increased focus on engineering work-based learning led to major contract wins with key employers in the automotive and energy sectors, including BMW Group, Volkswagen Group and British Energy. The value of these contracts is some GBP70m.

Building Schools for the Future (BSF), Lewisham: We opened our first school in Lewisham in January 2009 as part of our BSF contract, in partnership with Costain. VTE&S provides transformational learning consultancy, Information Communications Technology (ICT) managed services, and facilities management services, for up to 25 years, in an integrated model that brings innovation and value for money.

School improvement and support services: We have successfully begun our new school improvement contract for the 80 schools in Waltham Forest. Our major school support services contract across the 403 schools in Surrey also continues to run well, with our work contributing towards the best GCSE results ever for the county.

In Careers guidance, we have secured the South East regional NextSteps (adult guidance) contract, and several Connexions (youth guidance) contracts. Together these contracts are valued at GBP10m. VT has also been named preferred bidder for the ‘Response to Redundancy’ programme valued at GBP10m.

On the military side, we have built on our substantial naval training programme through VT Flagship, with new multi-activity contracts for the Royal Air Force at RAF Cosford and RAF Brampton Wyton Henlow (Cambridgeshire). These are valued at GBP13m and GBP30m respectively.

VTE&S has demonstrated its commitment to the environment by being awarded the Grey Fleet Hero’s Award from the Energy Saving Trust, in recognition of efforts made to reduce carbon emissions through offering fuel efficient vehicles to staff.

Going forward

The Government’s commitment to both the education and the skills agenda continues to make the market attractive for VTE&S. Current economic conditions demonstrate the need for both individuals and businesses to acquire skills as they seek to enhance their competitiveness.

Despite difficulties in the credit market which have impacted some private finance initiatives, we also believe that the BSF programme will continue to progress. Having most recently been selected as part of a successful consortium in the Borough of Luton, VTE&S is well positioned to benefit as this programme matures.

VT COMMUNICATIONS

31 March 2009 2008 GBPm GBPm Turnover GBP 115.1m GBP 107.2m Underlying Operating profit GBP 19.8m GBP 16.9m Margin 17.2% 15.8%

What we do

VT Communications (VTC) designs, builds and operates communications infrastructure where security and resilience are critical.

Highlights

Underlying operating profit growth of 17% with an improvement in margin by 1.4 per cent.

- Initial milestones achieved in FSTA and UKMFTS ICT programmes - Broadened Digital Terrestrial Television (DTTV) contract with Arqiva - Received BBC award for excellence in partnering and service delivery

UK Military Flying Training System (UKMFTS) and Future Strategic Tanker Aircraft (FSTA) ICT programmes: Continued profit growth was underpinned by an expansion of our Information Communication Technology (ICT) capability. Key project milestones have been achieved on both projects which we are delivering, primarily, through our sub-contracts held with VT Aerospace.

Additional DTTV contract with Arqiva: We have successfully delivered Digital Terrestrial Television (DTTV) low-power infrastructure in the Selkirk television region for Digital Switchover (DSO) in the UK. A GBP9m contract with Arqiva will see us install low-power infrastructure for DSO at sites across the country. This work has now been extended through a new contract worth an additional minimum GBP7m.

Partnering excellence recognised by BBC: VTC won a BBC Global News professional services award recognising its partnering approach with the BBC World Service. This reflected in-service delivery excellence in re-engineering World Service control facilities in London and establishing a new network operations centre.

Going forward

VTC is competing for the Joint Military Air Traffic Services (JMATS) Public Private Partnership (PPP) programme, due to be awarded in 2013. This GBP1bn programme will deliver a solution for air traffic and related data management services to the UK military in the UK and overseas.

We are also engaging with potential industry partners to participate in the multi-billion pound Future Core Networks (FCN) programme for the UK MoD. This critical project will see the convergence of all communications networks and systems across the MoD.

VT SERVICES INC.

31 March 2009 2008 GBPm GBPm Turnover GBP 303.2m GBP 241.4m Underlying Operating profit GBP 14.1m GBP 8.6m Margin 4.6% 3.6%

What we do

VT Services Inc is the US arm of VT Group and provides support services for the US Government, in particular the Department of Defense. These services include facilities and logistics management, electronic engineering, and communication systems installation and support.

Highlights

Turnover grew by 26% and underlying operating profit by 64%. The nine month contribution of VT Aepco contributed a significant portion of the growth and margin improvement.

- Secured follow-on task order to support the oil analysis laboratories for the US Army - Nearly $180m of extension and renewal contracts at various locations - Achieved ‘Exceptional’ rating from US Army Aviation Missile Command in annual performance evaluation

Further work with LOGSA: VT has won the $40m follow-on task order to support the oil analysis laboratories for the US Army Materiel Command Logistics Support Activity (LOGSA) in various US and overseas locations.

Contract extension and renewal: VT Services has secured extensions to current contracts and additional task orders at existing locations totalling some $180 million over the past year. These include additional work at King’s Bay, Georgia, Camp Lejeune, North Carolina, and Huntsville, Alabama, plus contract extensions at Fort Stewart, Georgia, and Patrick Air Force Base, Florida.

Client recognition: We won the US Army Directorate of Public Works (DPW) Support Contractor of the Year award for our work at Fort Stewart/Hunter Army Airfield, Georgia Installation. The award, covering all US Army installations, honours excellence in contractual accomplishment and support of the installation’s DPW mission. VT provides a range of public works operations and maintenance services at the Fort Stewart/Hunter Army Airfield locations.

Going forward

The US defence budget is targeted to increase by 4% per annum. There will be increased focus on the intelligence services and the upgrade and maintenance of existing equipment. We are well placed to address these priorities.

DISCONTINUED OPERATIONS

31 March 2009 2008 GBPm GBPm Turnover GBP 543.3m GBP 355.6m Net profit arising from discontinued operations GBP 83.5m GBP 20.9m Highlights - Joint Venture established - Acceptance of first Royal Navy Type 45 Destroyer - Major role in manufacture of New RN Aircraft Carriers - Extension of transfer of technology agreement with Greece - Disappointing performance on export contracts

BVT Surface Fleet was formally established in July 2008. This was followed shortly afterwards by the signing of the manufacturing agreement for the Royal Navy’s two new CVF aircraft carriers, with BVT playing the major role. This role was subsequently expanded with further work allocated to BVT’s facilities in Glasgow and Portsmouth.

BVT also handed over the first of the Royal Navy’s new Type 45 destroyers, HMS Daring, in December 2008, with the ship sailing into Portsmouth where all six ships in the Class will be based. BVT will provide comprehensive support for the ships.

Negotiations with the UK MoD on the Terms of Business Agreement (ToBA) continue to make good progress. This agreement will guarantee BVT leadership of defined future programmes with respect to design, build and through-life support.

In export work, BVT has extended its technology transfer agreement with Elefsis Shipyards in Greece with an order for two further fast attack craft for the Hellenic Navy, increasing the total number of ships in this Class to seven.

Operational performance in BVT Surface Fleet for the year has been disappointing; with under performance on export contracts, these export contracts are expected to give rise to losses estimated at GBP54m of which our share is GBP24m.

On 19 March 2009 the Group disposed of its trade and certain assets and liabilities of VT Motion Control Group to Naiad Dynamics US Inc., Naiad Dynamics Holland BV and Naiad Dynamics UK Limited. This business was primarily involved in the provision of stabilizers to the shipbuilding industry.

STRATEGY

Our proposed exit from the shipbuilding and naval support Joint Venture, BVT Surface Fleet, will enable us to become a business focussed entirely on services. As provided in the terms of the put option within the JV agreement signed in June 2008, we intend to initiate an exit from the JV this summer.

The transition to a pure services business represents a major change in VT’s long history and provides us with an exciting opportunity to take the company forward, in line with our vision to be recognised as the number one international government services group.

We define ‘number one’ in terms of quality, reputation and growth, not just size. The support services we provide are mission critical, generally with an engineering focus. We operate on an international scale, although our primary focus is on our home markets in the UK and USA, with secondary targets in the Middle East. Our government customers include both central and local government as well as those agencies that procure on behalf of governments.

The engineering focus of our business reflects our heritage, giving us a unique value proposition that sets us apart from most companies in the services sector. We will use these engineering skills to develop further our management of critical assets and infrastructure in partnership with our customers.

Our strategic direction has been reinforced by our reorganisation into three business segments - Defence; Government and Critical Services; and our US defence business, VT Group Inc - closely aligning our offering with the customers we serve.

The new structure enables a more efficient use of overheads. We have therefore initiated a program of reducing employee levels by a further 290 people (including 40 in the US) in addition to the 100 people who have recently left the business as part of prior integration programmes. Total savings will be GBP15m per annum with GBP8m being used to offset the overhead recovery lost by the exit from BVT Surface Fleet. The net saving will be seen in the financial year 2010/11 and beyond. We are positioning the Group to be more competitive for future bids and to be more resilient if the current recession deepens.

The new operating model will allow for greater sharing of talent, expertise and knowledge across the Group. It will also bring operational efficiency benefits from a “One VT” approach as we implement shared services for our finance and human resources back office functions.

Defence will be responsible for managing and strengthening our relationship with the UK MoD, who named us their Partner of Choice for the second year running. It is important that we retain defence contracts which are due to be re-bid over the next few years. There is also good potential to secure new defence contracts in line with our value proposition both in the UK and in other defence markets, where we can export our business model and achieve benefits for the customer.

Government and Critical Services will manage and develop our non-defence Government relationships, in which we have established customers, a strong track record and existing contracts that we can develop further. We see this as a major potential area for growth. Principal areas of development will be in education, environmental services, police and fire services, where we will build on our experience. We believe that our capabilities in activities such as facilities management, fleet management, equipment support, design and build, education services, training, technical consultancy and ICT can be further expanded and utilised in these sectors.

In the US, VT Group Inc. will concentrate on growing our work with the US Department of Defense (DoD). There are a number of new bid and re-bid opportunities approaching in the US and we will be employing considerable resource to ensure the successful award of these contracts. VT Group Inc. is well placed to address the increasing pressures on the US defence budget, as our focus is on the upgrade of existing platforms, particularly in the army and naval areas, in a cost-effective and efficient manner. In future there is likely to be more pressure to re-use and upgrade existing equipment rather than replace with new. We continue to seek opportunities to develop our capabilities in more technical markets offering potential for greater rewards.

We anticipate that the pressures of the current economic situation will have an impact on customer budgets. Our response will be to develop more integrated service offerings that generate greater value-for-money through innovation and efficiency in service delivery. We will continue to concentrate on supplying services that are critical to the success of our customers’ operations.

The future growth of VT Group will be based on providing a wider range of services to our existing customers with selective growth in other closely related domestic and international markets.

Organic growth

Growing our business by renewing, or expanding, our work with existing customers and within existing markets is essential to growing shareholder value. The combination of our long-term contracts and recurring orders provides a high degree of visibility of our future revenue. At 31 March 2009, we had already secured significant order book coverage for 2009/10 and 2010/11. There is considerable scope to grow in our markets and also in the markets that we have entered recently, particularly waste and nuclear.

Restrictions on defence budgets, particularly in the UK, are set to continue. However, with VT’s focus on increasing efficiency, we are confident that the Group will fare relatively well. We have also identified opportunities where we can add value by using our existing customer relationships and performance to expand our activities into adjacent sectors. Our other business sectors, including education, waste and nuclear, offer further growth opportunities, with both central and local government areas for large potential growth. In the US, we also expect budgets to flatten but we believe that our skills will become increasingly valuable for the US Department of Defense, faced with pressure to maintain existing platforms and reduce support costs.

Acquisitions

The current economic environment may well present opportunities for acquisition led growth. Our ability to exploit these opportunities will be enhanced by the expected proceeds from the exit from BVT Surface Fleet Ltd. VT expect to have net cash at a time when corporate debt levels of other companies are likely to generate disposals. We will maintain a prudent acquisition approach, concentrating on adding support services businesses in our primary UK and US markets that represent a good strategic fit, complement our core competencies, are attractively priced in relation to our financial criteria and can be integrated effectively into VT’s services businesses.

Source: VT Group plc

Enquiries: Paul Lester, Chief Executive, Tel: +44(0)7785-388664; Phil Rood, Media Relations, Tel: +44(0)7941-164756; Ginny Pulbrook, CDR, Tel: +44(0)20-7282-2945