Change in Segment Reporting

Babcock International Group PLC
19 October 2007

19 October 2007




                        Babcock International Group PLC

                          Change in Segment Reporting





As previously announced, Babcock International Group will be amending the format
of its segment reporting.

Following the acquisition of Devonport Management Ltd (DML) in June 2007 the
divisional structure of the Group will be realigned to reflect more clearly the
activities and work streams of the business.

The newly formed Marine division will include Babcock Engineering Services (BES)
at Rosyth, Babcock Naval Services (BNS) at HMNB Clyde (Faslane) and Devonport
Management Ltd (DML), Plymouth.  The Marine division will be the sole support
partner to the Royal Navy's submarine fleet and will be a major partner in the
provision of support to the current surface fleet and to the CVF project. The
division will also include the Group's civil and military nuclear businesses
under BNS Nuclear.

The Defence Services division will consist of Babcock Defence Services (BDS) and
Babcock Infrastructure Services (BIS). Defence Services will continue to focus
primarily on the provision of facilities management, equipment support and
training expertise to the British Armed Forces. BNS at HMNB Clyde previously
formed part of the Defence Services division.

The Technical Services division, which included the results of BES at Rosyth and
Alstec's nuclear businesses, will be discontinued as a reporting segment. The
Rail, Engineering and Plant Services and Networks divisions remain unchanged.

The new segment reporting will be adopted with our interim results to be
published on 13 November 2007.  In preparation for this we have restated the
half year results to 30 September 2006 and the full year results to 31 March
2007.  These are set out below.



For half year ended 30 September 2006




                                                      Operating profit
                                                       before acquired
                                                            intangible          Acquired
                                                      amortisation and        intangible
                                                     exceptional items  amortisation and
                                             Revenue                   exceptional items Operating profiy
                                                  £m                £m                £m               £m
                                            RESTATED          RESTATED          RESTATED         RESTATED
Marine                                         131.0              11.1             (0.8)             10.3
Defence Services                               118.4               9.8             (0.7)              9.1
Rail                                           115.6               4.4             (1.8)              2.6
Engineering & Plant Services                    80.2               6.7                 -              6.7
Networks                                        42.4               4.8             (0.3)              4.5
Unallocated                                                      (3.3)             (0.6)            (3.9)
Total Continuing Operations                    487.6              33.5             (4.2)             29.3





For full year ended 31 March 2007




                                                      Operating profit
                                                       before acquired
                                                            intangible          Acquired
                                                      amortisation and        intangible
                                                     exceptional items  amortisation and
                                            Revenue                    exceptional items  Operating profit
                                                 £m                 £m                £m                £m
                                            RESTATED          RESTATED          RESTATED          RESTATED
Marine                                         271.7              25.6             (1.5)             24.1
Defence Services                               247.3              20.4               0.6             21.0
Rail                                           228.8               9.3             (4.1)              5.2
Engineering & Plant Services                   165.6              13.3                 -             13.3
Networks                                        74.9               6.8             (0.3)              6.5
Unallocated                                        -             (7.1)             (0.2)            (7.3)
Total Continuing Operations                    988.3              68.3             (5.5)             62.8



Note:    There has been no change to the share of joint venture results.

                                      Ends



Contact:

Babcock International Group PLC
Bill Tame, Finance Director                          Tel: [phone]
Financial Dynamics
Andrew Lorenz                                        Tel : [phone]
Susanne Yule






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