Disposal of Railcare

Babcock International Group PLC
1 December 2000



Friday 1st December 2000

Contact:

Gordon Campbell

Chief Executive

Nigel Young

Group Finance Director

Babcock International Group PLC

Telephone: [phone]

Ginny Pulbrook

Director

Citigate Dewe Rogerson

Telephone: [phone]



                       Babcock International Group PLC

                             Disposal of Railcare

In view of the referral to the Competition Commission of the disposal to
DaimlerChrysler Rail Systems (UK) Limited (Adtranz) of Railcare Ltd (a UK
based 60:40 jointly owned venture with Siemens plc) Babcock today advises that
the transaction has lapsed as both Adtranz and Babcock have agreed not to
continue with the reference to the Commission in view of the delay involved.

Babcock and Siemens will now pursue one of the other options.