Corporate Action

Babcock International Group PLC
18 September 2000

CAPITALISATION ISSUE AND CONSOLIDATION
SECURITY TITLE
*Ord Shs
MNEMONIC CODE        *BAB
SEDOL CODE           *098-157
TERMS                *For every 100 existing Ordinary Shares - 100 Redeemable   
                     of 50p                                   'B' Shares of     
                                                             18p
                      and

                      For every 100 existing Ordinary Shares - 83 New Ordinary
                      of 50p                                   Shares of 60p

DEALINGS COMMENCE NEW SHARES *23-10-00
PROVISIONAL EX DATE  *23-10-00
RECORD DATE          *20-10-00
NOTES *The consolidation is also effective on 23-10-00.