Disposal

Babcock International Group PLC 4 February 2002 4th February 2002 BABCOCK SELLS PLASTERBOARD DRYING BUSINESS Further to the announcement made on 2nd January 2002, Babcock International Group PLC (Babcock) today announces the sale of its US-based plasterboard drying business (AKI) to Grenzebach Maschinenbau GmbH. The sale continues the repositioning of Babcock as a support services company. Babcock will receive £1.4m in cash (including £0.7m deferred until 1 May 2002) for the business, which in the six months to 30 September 2001 had a turnover of £1.7m and made a loss before interest and tax of £0.5m. Commenting on the transaction the Babcock Chairman, Gordon Campbell said: 'Following the disposal of the cement handling business four weeks ago, this represents a further step towards achieving our objective of becoming a focused support services and facilities management business.' Notes to editors: About Babcock International Group PLC Babcock International Group PLC is a support services business with focused activities in defence training and international engineering. Sales in the six months to 30 September 2001 were £227 million. The Group operates from three principal divisions: BES (engineering and support services in defence, rail, marine and secure facilities sectors), HDS (support services and facilities management for the defence sector) and BMH (material processing technologies and engineered systems). The Group is currently in the process of disposing of the BMH division as part of Babcock's strategy to focus on the support services market and, in the process, enhance shareholder value. Babcock's head office is in London and the Company's shares are quoted on the London Stock Exchange. For further information, please visit Babcock's website at www.babcock.co.uk. Contact Gordon Campbell, Executive Chairman Bill Tame, Group Finance Director Babcock International Group PLC 020 7291 5000 Ginny Pulbrook Citigate Dewe Rogerson 020 7282 2945 This information is provided by RNS The company news service from the London Stock Exchange
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