Disposal

Babcock International Group PLC
30 August 2001


Date:                 30th August 2001

Contact:              Gordon Campbell, Executive Chairman

                      Nigel Young, Group Finance Director

                      Babcock International Group PLC

                      Telephone: [phone]

                      Ginny Pulbrook

                      Citigate Dewe Rogerson

                      Telephone: [phone]



                       BABCOCK INTERNATIONAL GROUP PLC



                         Disposal of Wood Operations


        Babcock International Group PLC, today announces that it has sold its
        Wood Operations in Finland and Sweden (which formed part of BMH
        Technologies Division) to a management buy out team. The purchase
        price is Euro 2.12m (£1.32m) paid in cash.

        Commenting on the sale, Babcock's Chairman, Gordon Campbell
        stated:

        'This is the first sale of one of the BMH businesses which we
        announced in our 2001 Annual Report that we would be looking to
        achieve during 2001. We wish the management team well in taking on
        these ventures in Finland and Sweden'.



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