Contract Update

Babcock International Group PLC
25 March 2002


Date:                25th March 2002

Contact:             Gordon Campbell, Executive Chairman

                     Bill Tame, Group Finance Director

                     Babcock International Group PLC

                     Telephone: [phone]

                     Ginny Pulbrook

                     Citigate Dewe Rogerson

                     Telephone: [phone]



                        Babcock International Group PLC

                                Contract Update




Babcock International Group PLC, the support services company, has today
reaffirmed that, as indicated at the time of publication of their Interim
Results on 22nd November 2001, the Group has been selected as the Preferred
Supplier by the Ministry of Defence in relation to the long term management and
maintenance contract at Her Majesty's Naval Base on the Clyde. The Group will
give further details after the anticipated Statement from the Ministry.

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