Completion of Disposal

Babcock International Group PLC 11 April 2006 11 April 2006 Babcock International Group PLC Babcock completes disposal of non-core businesses Babcock International Group PLC ('Babcock' or 'the Group') today announces the completion of its programme of disposals of the non-core businesses acquired with Peterhouse Group PLC in 2004. The disposal programme has been completed following the sale in February 2006 of the loss making IETG business, the environmental and flow monitoring unit (net assets approximately £0.1 million) and earlier this month, the disposal of EPS Gmbh, the German based events and site services business (net assets approximately £ 1.3 million); and the sale of Eve Trakway Limited, the UK based site access and events business (net assets approximately £8 million). All three businesses were sold to their respective management teams. The consideration received for these businesses was £ 8.0 million, including £2.3 million in unconditional deferred payments. The turnover of these businesses in the period up to disposal totalled approximately £26 million of which circa £5.3 million related to IETG, which was reported within the Group's Health, Safety and Environmental division. Both EPS Gmbh and Eve Trakway Limited were reported within the Networks division. Commenting on these transactions, Peter Rogers, Chief Executive Officer of Babcock, said: 'The sale of these businesses brings to an end the disposal programme that was initiated following the acquisition of Peterhouse Group PLC. The nature of these operations did not align with the core activities and competencies of Babcock and we believe that their future development is more assured outside of the Group. We are now fully focused on growing our core businesses both organically and by acquisition.' For further information please contact: Babcock International Group PLC Peter Rogers, Chief Executive 020 7269 7291 Financial Dynamics Susanne Walker / Richard Mountain 020 7269 7291 Notes to editors: About Babcock International Group PLC Babcock International Group PLC is an asset management business. We manage fixed infrastructure and mobile assets. Babcock integrates labour, technical capabilities, systems and supply chain partners to meet the outsourcing needs of customers for 'mission-critical' capabilities. In the year to 31 March 2005 sales from continuing business were £745 million. In June 2004 Babcock acquired the Peterhouse Group which brought; Rail and Networks to the Group. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support and training services to the armed forces. Technical Services, providing engineering and logistical support to both the defence and civil sectors in the UK. Engineering and Plant Services supplying design, installation and maintenance support to the energy sector in Africa and the US. It also holds the Volvo franchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK rail infrastructure. Networks, supporting the design, maintenance and renewal of power transmission and cellular telecommunications networks in the UK. Babcock's head office is in London and the Company's shares are quoted on the London Stock Exchange in the support services sector (EPIC:BAB). For further information, please visit Babcock's website at www.babcock.co.uk. Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers (the 'Code'), if any person is, or becomes, 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of VT Group plc or of BAE Systems plc or of Babcock International Group PLC, all 'dealings' in any 'relevant securities' of that company (including by means of an option in respect of, or a derivative referenced to, any such 'relevant securities') must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the 'offer period' otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an 'interest' in 'relevant securities' of VT Group plc or of BAE Systems plc or of Babcock International Group PLC, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant securities' of VT Group plc or of BAE Systems plc or of Babcock International Group PLC by VT Group plc or BAE Systems plc or Babcock International Group PLC, or by any of their respective 'associates', must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose 'relevant securities' 'dealings' should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 'Interests in securities' arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a 'dealing' under Rule 8, you should consult the Panel. This information is provided by RNS The company news service from the London Stock Exchange ISUAVURNWRSAAR
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