Re Contract

Babcock International Group PLC
16 January 2007

                                                                 16 January 2007



                        Babcock International Group PLC
                           ('Babcock' or the 'Group')



                           Award of SLAM II Contract



Babcock International Group PLC, the support services company, announces that
Debut Services Ltd, its consortium jointly owned with Bovis Lend Lease, has been
selected by the UK Ministry of Defence for the second phase of Defence Estates'
Single Living Accommodation Modernisation project (SLAM II).



SLAM II will deliver upgraded and new single living accommodation to armed
services personnel across England and Wales.  The Project is expected to deliver
a further 7,000 bed spaces over a period of five years with Babcock providing
the through life maintenance services for the completed units with an estimated
value to Babcock of £20 million.



Following the construction starting in 2008, Babcock will be involved in
programme management and project planning.  Following completion of the
construction phases from 2009 onwards, Babcock will deliver maintenance services
for a 7 year period.



Phase I of Project SLAM, which commenced in 2003, has seen Debut Services Ltd
construct and maintain around 14,000 single living bed spaces.



Peter Rogers, Chief Executive of Babcock, commented:



'We are delighted to have been awarded the second phase of this Project.
Together with Bovis Lend Lease, we are committed to working in partnership with
Defence Estates to deliver a high standard of living accommodation for armed
services personnel.'



                                    - Ends -



Enquiries:


Babcock International Group PLC                          Tel:      [phone]
Peter Rogers (Chief Executive)
Bill Tame (Finance Director)

Financial Dynamics                                       Tel:      [phone]
Andrew Lorenz / Susanne Walker









Notes to editors:

About Babcock International Group PLC



Babcock International Group PLC is an asset management business.  We manage
fixed infrastructure and mobile assets for a range of blue chip customers.
Babcock integrates labour, technical capabilities, systems and supply chain
partners to meet the outsourcing needs of customers for 'mission-critical'
capabilities.



In the year to 31 March 2006 sales from continuing business were £837 million.



The Group operates across five core business segments:



Defence Services, supplying facilities management, equipment support and
training services to the armed forces.



Technical Services, providing engineering and logistical support to both the
defence and civil sectors in the UK.



Engineering and Plant Services, supplying design, installation and maintenance
support to the energy sector in Africa and the US.  It also holds the Volvo
franchise for construction equipment in Southern Africa.



Rail, providing design, renewal and installation services for the UK rail
infrastructure.



Networks, supporting the design, maintenance and renewal of power transmission
and cellular telecommunications networks in the UK.



Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange in the support services sector (EPIC: BAB).  For further
information, please visit Babcock's website at http://www.babcock.co.uk./








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