Re Contract

Babcock International Group PLC
29 June 2005


Date:             29 June 2005

Contact:          Peter Rogers, Chief Executive
                  Babcock International Group PLC
                  Telephone: [phone]

                  Rob Gurner
                  Financial Dynamics
                  Telephone: [phone]


              Babcock-led consortium wins preferred bidder status
       for £500 million Ministry of Defence Eastern Region Prime contract

Babcock International Group PLC ('Babcock'), the support services company,
announces today that, although no official announcement is expected until July
11, 2005, it understands that its joint venture company with Dyncorp
International LLC (Babcock Dyncorp Limited) has been recommended as preferred
bidder by the Ministry of Defence (MoD) for the Regional Prime East Contract
(RPEC).  The RPEC is to provide all property maintenance and future capital
works schemes across the MoD estate in the Eastern region of the United Kingdom.
This contract is the last of 5 similar contracts covering Ministry of Defence
property throughout the UK.

The RPEC will start in the Second Quarter 2006 and will run for a seven year
period, after which the MoD has an option to extend the contract for a further
three years. The contract will involve in excess of £500 million of expenditure
for maintenance services and capital works.

The area covered by the RPEC ranges from Lincolnshire in the north, Derbyshire
in the west, Essex in the south and Norfolk in the east and involves support to
a number of Royal Air Force, Army and Defence Logistics Organisation
establishments.  The contract forms a central part of the MoD's initiative to
provide a higher quality estate.

Peter Rogers, Babcock International Group PLC Chief Executive, said:

'We are delighted to have been recommended as preferred bidder for this
important contract, which further extends our relationship with the MoD.  This
will be the second major success for Babcock in the MoD's Regional Prime
Contracting programme and Babcock will be the only company to participate in two
Prime contracts.  The contact, when awarded, will increase the value of the
Group's order book to over £2 billion'.



                                    - Ends -



Notes to editors:

About Babcock International Group PLC

Babcock International Group PLC is an asset management business.  We manage
fixed infrastructure and mobile assets.  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 2005 sales from continuing business were £760 million.
In June 2004 Babcock acquired the Peterhouse Group which brought Rail, Networks
and Health, Safety and Environmental to the Group.

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 www.babcock.co.uk.




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