Restructuring at Rosyth

Babcock International Group PLC
23 July 2004


23 July 2004

                        Babcock restructuring at Rosyth


Babcock International Group plc, ('Babcock'), the support services company,
announces today 290 redundancies at Rosyth Dockyard in Fife. These redundancies
are necessary as a result of the continuing drive to reduce costs and increase
efficiency at Rosyth.

Peter Rogers, Babcock Chief Executive, said:

''The restructuring of Rosyth into four separate business units is now virtually
complete and has delivered demonstrable benefits, both in aligning the cost base
and in developing commercial opportunities such as the substantial work on
Heathrow Terminal 5.

''Whilst redundancies are always regrettable this necessary restructuring and
the consequent lowering of our cost base has also been an essential part of
winning the recent warship refit competitions for HMS Ramsey and HMS Walney
(Mine Countermeasures Vessels), HMS Kent (Type 23 Frigate) and HMS Edinburgh
(Type 42 Destroyer).  It is hoped that the redundancies can be achieved by
voluntary means.

''Winning this work in the face of stiff competition is excellent news for
Rosyth and demonstrates that the continuing drive to reduce costs and increase
efficiency can result in contract wins. These refits together with the work on
Heathrow Terminal 5 and the work still outstanding from the allocated programme
give Rosyth the foundation to address the future with confidence.''


                                     -ENDS-


Babcock International Group PLC
Peter Rogers, Chief Executive                                  020 7291 5000

Financial Dynamics
Rob Gurner                                                     020 7269 7221


Notes to editors: About Babcock International Group PLC

Babcock International Group PLC is a support services business providing
technical services, training and facilities management to the defence and civil
sectors.  In the year to 31 March 2004 sales from continuing business were £438
million.

The Group operates in two principal sectors: Technical Services (engineering and
support services in defence, rail, marine and secure facilities sectors) and
Training & Support (support services, training and facilities management for the
defence and civil sectors).

Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange.  For further information, please visit Babcock's website
at www.babcock.co.uk.



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