Re Contract

Babcock International Group PLC
17 November 2005


Date:       17 November 2005
Contact:    Peter Rogers, Chief Executive             Andrew Lorenz / Rob Gurner
            Babcock International Group PLC           Financial Dynamics
            Telephone: [phone]                  Telephone: [phone]



                   Babcock-led consortium wins contract award
       for £500 million Ministry of Defence Regional Prime Contract East

            Babcock now the leading supplier of base infrastructure
                maintenance services to the Ministry of Defence


Babcock International Group PLC ('Babcock'), the support services company,
announces today that its joint venture with Dyncorp International - Babcock
Dyncorp Limited -  has been contracted by the Ministry of Defence (MoD) to
provide all property maintenance and future capital works schemes across the MoD
estate in the East Region of the United Kingdom under the Regional Prime
Contract East (RPCE).

Babcock is the only company to have been awarded two of these Regional Prime
contracts, following its win last year of the South West Prime Contract with
Bovis Lend Lease, and the Group is now the leading supplier of base
infrastructure maintenance services to the MoD. The RPCE is the last of the five
Prime contracts to be awarded by the MoD.

The contract will involve expenditure in the region of £500m for maintenance
services and capital building works over a seven year period, starting in March
2006.  The MoD has an option to extend for a further three years. Babcock will
be the majority shareholder in the Joint Venture.

The contract involves support for a number of MoD bases provided for the British
Army, Royal Air Force and DLO in an area extending from Lincolnshire in the
north to Essex in the south, Derbyshire in the west and Norfolk in the east. The
contract forms a central part of the MoD's initiative to provide a higher
quality estate by changing its organizational structures and introducing Prime
Contracting methods. It will involve the provision of a comprehensive building
and infrastructure maintenance service, geared to improving the overall
condition of the estate, as well as the delivery of a major capital works
programme.

Peter Rogers, Chief Executive of Babcock said;-

'We are delighted to have won two of the five Regional Prime Contracts which,
alongside our contract to maintain the new SLAM (Single Living Accommodation
Modernisation) units, ensures Babcock is now the leading supplier of base
infrastructure maintenance services to the MoD. '

                                    - 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 £745 million.
In June 2004 Babcock acquired the Peterhouse Group which brought; Rail and
Networks 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.


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