Re Contract

Babcock International Group PLC
20 July 2004

Date:   20 July 2004


                  Babcock wins £13m refit contracts for Rosyth


Babcock International Group Plc, ('Babcock'), the support services company,
announces today that it has been successful in winning three warship repair
competitions. These relate to the refits of HMS Kent (Type 23 Frigate), HMS
Edinburgh (Type 42 Destroyer), and HMS Walney (Mine Countermeasures Vessel). The
work will start later this year with completion of the three ships taking place
between spring and autumn 2005. The value of these contracts in aggregate is
around £13m.

Announcing the contract awards for HMS Edinburgh and HMS Walney in the House of
Commons, the Minister, Adam Ingram, paid tribute to the workforce and management
at Rosyth. He also confirmed that Rosyth will continue to carry out a
significant element of Royal Navy surface ship refit work and that the potential
for Rosyth's involvement in the new Aircraft Carrier was promising for the
future.

Peter Rogers, Babcock Chief Executive Officer, said:

'Winning this work in the face of stiff competition is excellent news for Rosyth
and demonstrates that the continuing drive to reduce costs and increase
efficiency at Rosyth can result in contract wins. Whilst these contracts alone
do not bridge the gap to the start of the aircraft carrier they are a welcome
start.

'These refits coupled with the substantial work on Heathrow Terminal 5 and the
MoD work still outstanding from the allocated programme give Rosyth the
foundation to address the future with confidence.'


                                    - ENDS -


Babcock International Group PLC
Peter Rogers, Chief Executive                                   020 7291 5000

Financial Dynamics                                              020 7269 7221
Rob Gurner


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 2004 sales from continuing business were £438
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