Preferred Bidder Status

Babcock International Group PLC
04 September 2002

04 September 2002


Babcock and Bovis Lend Lease Consortium wins preferred bidder status on £1
billion MoD project


Contacts:         Gordon Campbell                       Rupert Steveney
                  Executive Chairman                    Citigate Dewe Rogerson
                  Babcock International Group PLC       Telephone: [phone]
                  Telephone:  [phone]


Babcock International, the support services group, today announced that its
consortium jointly owned with Bovis Lend Lease - Debut Services - has been
selected as preferred bidder for the Ministry of Defence Single Living
Accommodation Modernisation (SLAM) programme.

The SLAM contract is to provide single living accommodation to the Royal Navy,
Army and Royal Air Force.  The total project value managed by MoD Defence
Estates will involve approximately £1 billion of investment over 10 years.

Under the arrangements of the Debut joint venture, Babcock will deliver through
life maintenance services for the completed units.  This element of the contract
is expected to be up to £150 million over the 10 year contract period.

Bovis Lend Lease will be responsible for managing the construction/refurbishment
of the new accommodation.

Gordon Campbell, Chairman of Babcock International said:

'We are delighted to be involved in project SLAM which extends our relationship
with the MoD.  Babcock is fully committed to prime contracting which forms such
a large part of the MoD's procurement programme.  It is particularly pleasing
that our recent acquisition, SGI, has achieved success so quickly and is
evidence of the quality of the SGI team'.



Notes to editors:

About Babcock International Group PLC

Babcock International Group PLC is a support services business providing
technical services, training and facilities management to the defence and civil
sectors.  In the year to 31 March 2002 sales from continuing business were
£358.9 million.

The Group operates in three principal sectors: Technical Services (engineering
and support services in defence, rail, marine and secure facilities sectors),
Training & Support (support services, training and facilities management for the
defence and civil sectors) and Materials Handling (material processing
technologies and engineered systems).  The Group is currently in the process of
disposing of the Material Handling 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.


Phase one of the SLAM project is for the provision of 16,000 state of the art
living quarters, a marked departure from the barracks where single members of
the armed forces have traditionally been accommodated.  Phase two of the
programme is for a further 20,000 quarters based on the continuous development
of the new concept. The contract is a milestone in the changing needs of the
armed forces and will involve a number of locations across England and Wales,
with the option to include Scotland at a later stage.

The Defence Estate's PRIME contract initiative includes a pricing provision
which is an arrangement whereby the Prime Contractor is incentivised to reduce
costs to the Ministry of Defence through innovation.  At the same time the
contractor is able to increase the percentage of profit return against properly
incurred actual cost.

For the avoidance of doubt recent reports on a legal dispute between Cheshire
County Council and SGI Ltd do not involve the part of SGI purchased by Babcock
International.


                      This information is provided by RNS
            The company news service from the London Stock Exchange