Offer Talks Terminated

Babcock International Group PLC
10 May 2006




10 May 2006


                        BABCOCK INTERNATIONAL GROUP PLC

            REACTION TO ANNOUNCEMENTS FROM VT GROUP AND BAE SYSTEMS

Babcock International Group plc ('Babcock') notes today's announcements from VT
Group plc ('VT') and BAE Systems plc ('BAE Systems') that they do not intend to
make an offer for Babcock.

Babcock will continue to pursue its successful strategy which has transformed
the business over the last four years.  Babcock is now a leading support
services company with a proven track record, strong financial position and
attractive growth prospects.  Our results for the year ending March 2006,
published on 3 May, and the subsequent acquisition of Alstec Group demonstrate
Babcock's ability to create value for our shareholders both via organic growth
and through acquisitions.



Enquiries:


Babcock Group                                           Tel:     [phone]
Peter Rogers (Chief Executive)
Bill Tame (Finance Director)

Financial Dynamics                                      Tel:     [phone]
Richard Mountain/Andrew Lorenz






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