Re Agreement

Babcock International Group PLC
17 March 2004

17 March 2004




Contacts:  Peter Rogers, Chief Executive          Richard Mountain
           Babcock International Group PLC        Financial Dynamics
           Telephone: [phone]               Telephone: [phone]




Babcock forges successful alliances and secures work at Rosyth


Building on the successful alliances forged with Dyncorp for military support
and AMEC for Terminal 5 Babcock has recently signed team agreements with AT&T &
Lockheed Martin to exploit opportunities with defence and civil customers.

The successful alliance with AMEC on Terminal 5 continues to broaden with a
further £5m of work secured for modules to be constructed at Rosyth.  In
addition, Babcock Design & Technology is part of the winning team led by
Lockheed Martin UK for installation of the WECDIS digital navigation system into
the entire Royal Navy surface fleet.

Babcock International Group PLC and the Government Solutions division of AT&T
have agreed to offer their capabilities jointly within the UK & European
training market.  Babcock is a leader in the provision of training and training
support, whilst AT&T are leaders in the provision of Integrated Learning
Solutions within the United States.  As part of this agreement AT&T has been
invited into the Babcock led consortium bidding for the Defence Training Review.

Babcock Chief Executive Officer, Peter Rogers said, 'This is an exciting
development in the continuing transformation of Babcock International Group into
a complete service provision company.  It builds on our success at providing
flying training services for the Armed Forces, armoured vehicle training for the
Army and being selected, as the sole bidder for the Royal School of Military
Engineering PFI project'.

Lockheed Martin and FBM Babcock Marine have signed a memorandum of understanding
to co-operate in the joint marketing and pursuit of international business in
the maritime industry,  'By working together we significantly strengthen our
combined capabilities in the military and non-military markets and we look
forward to growing our business relationship as we move forward', said Craig
Schnappinger.

Babcock is also part of the successful Lockheed Martin UK team which has
recently won a landmark £29 million programme to install the latest generation
of digital mapping systems across the Royal Navy surface fleet.  The WECDIS
programme will improve navigational safety and enhance operational efficiency by
providing bridge and operations room personnel with a precise, real-time
navigation display and management system augmented with tactical navigation
applications.







                                    - Ends -

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 2003 sales from continuing business were £378
million.

The Group operates in two principal sectors: Technical Services (engineering and
support services in defence, rail, marine and secure facilities sectors) and
Training & Support (support services, training and facilities management for the
defence and civil sectors).

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