Disposal of Interest

Babcock International Group PLC
18 September 2000


                  Monday 18th September 2000

                Babcock International Group PLC
                               
   Disposal of remaining interest in Babcock Energy Limited
              (now Mitsui Babcock Energy Limited)
                               
Babcock International Group PLC ('Babcock') announces the
disposal of the remaining 40% of the shareholding of its
wholly-owned subsidiary, Babcock Management Limited, in Mitsui
Babcock Energy Limited to Mesco (UK) Ltd, a wholly-owned
subsidiary of Mitsui Engineering and Shipbuilding Co., Ltd.,
for £5 million in cash.

On 30th August 1995 Babcock International Group sold 75% of
its shareholding in Mitsui Babcock Energy Limited to Mesco
(UK) Ltd.  Babcock has exercised a put option under the terms
of that sale agreement.  The proceeds of the disposal will be
invested in Babacock's core businesses.

Enquiries:

Dr  T  J Parker     Babcock International Group PLC   01494 727 296
Nigel  Young        Babcock International Group PLC   01494 727 296
Ginny  Pulbrook     Citigate Dewe  Rogerson           020 7282 2945