Re Contract

Babcock International Group PLC
30 August 2002


30th August 2002


                    Babcock wins £100m MoD logistics contract



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



Babcock International Group PLC (Babcock), the support services business, today
announces that it has won a seven year contract for the procurement and delivery
of electrical and electronic components for use by the armed forces.

The contract, valued at over £100m was placed by the Defence Logistics
Organisation (DLO) and was won against strong competition. This success
represents a further extension of Babcock's logistic and support activities for
the MoD.

The contract will start in early 2003 and will be managed from Rosyth.

Commenting on the news, Babcock Chairman, Gordon Campbell, said 'The award of
this major contract is a fine example of Babcock utilising its skill base at
Rosyth in a new role, and continuing its commitment to providing a wide range of
services to the MoD'.

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.

The Defence Logistics Organisation is the MOD body responsible for providing
joint logistic support to the UK's Armed Forces. Logistic support is vital to
the maintenance and supply of everything from food, fuel and fighter aircraft to
ships and satellites.

The DLO consists primarily of five major Business Units - each providing
specialist logistics for Air, Sea, Land, Communications and Defence Logistic
Support.

Further information on the NPPO organisation is available from the MOD website

www.mod.uk/dlo/nppo/index.html


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