Re Agreement

Babcock International Group PLC
29 October 2002


29 October 2002


                 NEW AIRCRAFT CARRIERS - ROSYTH PREFERRED SITE

Babcock International Group, the support services company, announces that its
Rosyth shipyard has been proposed by both prime contractors as the preferred
site to build the new aircraft carriers.  In separate statements today both
Thales and BAE systems identified Rosyth as the likely venue for assembling the
major blocks from which the carriers will be built.

Babcock has also signed a co-operation agreement with BAE systems to be part of
the team for the design and build of the carriers, and has developed a detailed
production plan for a significant section of the carriers.

Gordon Campbell, Chairman of Babcock International, said, 'We are delighted to
be involved with both prime contractors and we believe Rosyth is the logical and
rational choice for assembling the carriers.  Today's announcements from the
prime contractors also recognise the performance of the Rosyth workforce in
refitting the existing carriers on time and on budget.'


Contacts: Gordon Campbell                        Andrew Lorenz/Richard Mountain
          Executive Chairman                     Financial Dynamics
          Babcock International Group PLC        Telephone: [phone]
          Telephone: [phone]



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.


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