Re Contract

Babcock International Group PLC
29 March 2004

Monday 29th March 2004

Embargoed until 11.00am (GMT)



Contacts:         Peter Rogers                                   Andrew Lorenz
                  Babcock International Group PLC                Financial Dynamics
                  Telephone: [phone]                       Telephone:  [phone]





AWARD OF £480M MOD CONTRACT MAKES A HATRICK OF SUCCESSES FOR BABCOCK


The MoD announced today that Debut Services (South West) Limited, a joint
venture between Babcock and Bovis Lend Lease has been awarded the contract to
provide property maintenance and future capital works schemes across the MoD
estate in the South West of the UK.

The Regional Prime Contract South West will start on 1st June 2004 for a
seven-year period, after which the MoD has an option to extend the contract for
a further three years.

The contract is for support to MoD Defence Estates and includes Royal Navy,
Army, Royal Air Force and DLO establishments in an area ranging from Gloucester
in the North, Portsmouth in the South, to Culdrose in the West.  The contract
forms a central part of the MoD's initiative to provide a higher quality estate.

The value of the contract to Babcock is in excess of £480m (£30m more than
originally expected).  Babcock will provide a comprehensive building and
infrastructure maintenance service, geared to improving the overall condition of
the estate.  Bovis Lend Lease will manage the capital works programme.

Speaking on behalf of Debut Services (South West) Limited, Kevin Thomas,
Managing Director, Babcock Infrastructure Services, said:

'We are delighted to achieve a successful close to the Preferred Bidder stage of
the project in under five months.  This is a significant achievement and
represents considerable effort from the entire project team.  We look forward to
moving ahead with our mobilisation activities to enable the rollout of prime
contracting across the South West region.  This will deliver improved value for
money and in turn a progressive improvement to the defence estate in the South
West.'

Babcock Infrastructure Services have also achieved two other contract successes:

The first is the extension for two years from 1st April 2004 of the property
consulting contract for the London Borough of Ealing.  The total value for
Babcock is approximately £4M.  The contract covers multi disciplinary design and
project management and maintenance management services.  The work includes the
project management and design of the new Mandeville School, Northolt - a £5.6m
project to create a centre of excellence for the teaching of 90 children, aged
between two to eleven, with severe learning difficulties and £7.5m improvements
across the school estate including M&E infrastructure works of over £3m.


The second is the award by the Metropolitan Police Authority of a property
consultancy contract for the estate maintenance activity across their entire
portfolio of building, including police stations, operated by the authority.
The contract is worth £4m to Babcock over two years.

Peter Rogers, Chief Executive of Babcock International Group PLC added:

'This hat trick of contract successes for Babcock Infrastructure Services
clearly demonstrates the continued success of SGI - which we acquired less than
two years ago.  The business has more than quadrupled in size and now possesses
a broad capability to tackle the most demanding of estate management contracts.
The award of the MoD contract is pleasing at £30m more than announced at
Preferred Bidder.  It will result in Babcock being well positioned to achieve
growth in the scope of the contract.'



                                     -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