Re Contract

Babcock International Group PLC
18 January 2002


Date:                 18th January 2002

Contact:              Gordon Campbell, Executive Chairman

                      Babcock International Group PLC

                      Telephone: [phone]
                      Rupert Steveney

                      Citigate Dewe Rogerson

                      Telephone: [phone]


                            Babcock Contract Wins

Babcock, the services group, has secured orders potentially worth over £20m
for its specialist marine design, technology and manufacturing business.


FBM Babcock has won a contract with the US Coast Guard for the design and
technical support activities involved in the upgrading of up to 140 Bridge
Erection Boats for the US Army.


In addition, FBM Babcock has announced today that it has secured the design
and manufacture contract for six Air Support Craft covering the provision of
training and range safety services at sea for the UK MoD. These craft will be
built at Rosyth and at the Babcock/Aboitiz yard in the Philippines.


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