Stmnt re Media Speculation

Babcock International Group PLC
18 December 2006



18 December 2006

                          Babcock International Group

                                   Statement


Babcock International Group PLC ('Babcock') notes the media speculation
concerning  Devonport Management Limited.


Babcock is fully supportive of the Ministry of Defence ('MoD') Maritime
Industrial Strategy ('MIS'). Babcock is discussing various possibilities with
other industry participants and with the MoD in order to progress the twin
objectives of achieving industry restructuring consistent with the MIS and
delivering shareholder value.


Contact:


Financial Dynamics          Andrew Lorenz/Susanne Walker                020 7269 7291



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