Re Network Rail

Babcock International Group PLC
11 September 2007



11 September 2007



                        Babcock International Group PLC

                      Network Rail supplier consolidation


Babcock International Group PLC, the leading support services company, welcomes
the announcement from Network Rail today that Babcock's rail division, First
Engineering, has been selected as one of four main contractors to deliver track
renewals in the UK.


The contract areas awarded to First Engineering are Scotland and the North West
of England.  This award is a significant increase to First Engineering's
existing track renewal business with Network Rail and comes at the end of a six
month process undertaken by Network Rail to reduce the number of suppliers from
six to four in the interests of greater efficiency.


The contract is expected to have a value of £85m per annum. Network Rail has an
option to progressively extend the contract up to 2014.  The contract will be
effective immediately and it is expected that a number of staff will transfer
their employment to First Engineering during the impending transition phase.


Peter Rogers, Babcock's Chief Executive, commented:

'We are delighted to receive the news that following a comprehensive review,
Network Rail has selected First Engineering as one of its four UK partners to
deliver track renewals.  We look forward to working with Network Rail to achieve
further improvements in the UK's rail infrastructure.'



                                    - Ends -





Contacts:

Babcock
Peter Rogers, Chief Executive                        Tel: [phone]
Bill Tame, Finance Director

Financial Dynamics
Andrew Lorenz                                        Tel: [phone]
Susanne Yule









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