Holding in Company

Babcock International Group PLC
26 April 2001

Babcock International Group PLC (the 'Company') received on 25th April the
following notification from Zurich Scudder Investments in relation to
5,720,000 shares in the Company, representing 3.9 per cent. of the Company's
issued authorised shares, pursuant to Section 198 of the Companies Act 1985:

'We refer to a Notifiable Interest of Zurich Financial Services and its Group
in the shares of your Company.

In accordance with the provisions of the above Section, we would inform you of
a change to the notifiable interest over shares in your Company, which are
held as detailed on the attached schedule.


Schedule


Babcock International PLC

Registered Owner                                            Ordinary 60p Shares

Littledown Nominees Limited       A/c   05576                         5,390.000
Littledown Nominees Limited       A/c   05577                           330,000

TOTAL                                                                 5,720,000


Notes


Littledown Nominees Ltd is a nominee for the ZFS Group subsidiaries: Allied
Dunbar Assurance plc, Zurich Financial Services UK (AD) Pension Scheme; Eagle
Star Insurance Company Ltd; Eagle Star Life Assurance Company Ltd; Eagle Star
Executives Pension Trustee Ltd; Eagle Star Executives Pension Trustee Ltd;
Eagle Star Securities Ltd; Sceptre Trust Ltd; Home & Overseas Insurance
Company Ltd; Zurich Scudder Pension Managers Ltd; and Chase Manhattan Trustees
Ltd, the Trustee for Eagle Star Unit Managers Ltd and the Depository to
Threadneedle Investment Funds ICVC.


ZFS is Zurich Financial Services, a company incorporated in Switzerland.


This notification is made on behalf of:


Allied Dunbar Assurance plc;


Allied Zurich Holdings Ltd, Zurich Scudder Investments Inc, ZKI Holding
Corporation, Zurich Financial Services (UKISA) Ltd, Zurich Group Holding,
Zurich Holding Company of America Inc, Zurich Insurance Company and Allied
Zurich plc, the intermediate holding companies of the aforementioned
companies, and Zurich Financial Services, their ultimate holding company.


The shares could be available for lending and this could lead to a short term
re-registration.'


Enquiries


Roger Martin

Group Assistant Secretary     01494 727 296