Re: Facilities Mngt. Contract

Babcock International Group PLC
9 April 2001

Monday 9th April 2001

                       Babcock International Group Plc

Prequalification Questionnaire ('PQQ') for the Regional Prime Contract for the
              facilities management of MoD property in Scotland

 Babcock International Group PLC, the international engineering services
Group, are pleased to confirm that Babcock, in cooperation with Balfour Beatty
Construction and W.S. Atkins have been selected as one of the groups who will
receive the Prequalification Questionnaire ('PQQ') for the Regional Prime
Contract for the facilities management of MoD property in Scotland.

The Defence Estates Organisation has advised that the contract will be valued
in excess of £460 million over the proposed life with an option for an extension
to 10 years.

The PQQ is due to be issued around the end of April leading to an Invitation
To Tender in Autumn and contract award Spring 2002.

The Scottish Region will be followed progressively by four regional contracts
covering England and Wales at value which ranges from £550 million to £750
million. The Group believe it is well placed to contest these opportunities.

                                   - Ends -



Enquiries:

Murray Easton       Babcock International Group PLC          01383 423 505

Ginny Pulbrook      Citigate Dewe Rogerson                   020 7282 2945