Disposal

Babcock International Group PLC
2 October 2000



Contact:  Dr John Parker, Chairman
          Nigel Young, Group Finance Director
          Babcock International Group PLC
          Telephone:     [phone]

          Ginny Pulbrook
          Citigate Dewe Rogerson
          Telephone:     [phone]




                 BABCOCK INTERNATIONAL GROUP PLC
                                
   Disposal of Babcock's rail maintenance interests to Adtranz
                                
                                
Babcock International Group PLC ('Babcock') announces that it has executed a
sale and purchase agreement to dispose of its majority held rail maintenance
business, Railcare Limited ('Railcare') (a UK based 60:40 jointly owned
venture with Siemens plc) to DaimlerChrysler Rail Systems (UK) Limited
('Adtranz').  Completion of the disposal is conditional upon the satisfactory
approval of the Office of Fair Trading. Babcock would receive at completion
cash consideration of some £5.7m.

In the  year to 31st March 2000 Railcare incurred losses before taxation and 
goodwill amortisation of £3.4m of which Babcock's share was £2.0m.  At 31st
March 2000 Babcock's consolidated balance sheet included net assets of £17.2m
in respect of Railcare, of which Siemens' minority interest was £7.8m.  The
exceptional loss which would arise for Babcock from the disposal is expected
to be some £4.0m.

Adtranz's principal activity in the UK is the design, manufacture, 
maintenance, repair and refurbishment of railway rolling stock and rolling
stock equipment.

The proceeds from this disposal will be focussed upon expanding and developing
Babcock into a strong specialist service provider within growth markets.