Disposal Referral

Babcock International Group PLC
22 November 2000

Contact:  Nigel Young
          Group Finance Director
          Babcock International Group PLC
          Telephone: [phone]

          Ginny Pulbrook
          Director
          Citigate Dewe Rogerson
          Telephone: [phone]

                        BABCOCK INTERNATIONAL GROUP PLC

                       Competition Commission Referral

 Further to the announcement made on 2nd October 2000 regarding the disposal
of Babcock's majority held rail maintenance business, Railcare Limited, (a UK
based 60:40 jointly owned venture with Siemens plc) to Daimler Chrysler Rail
Systems (UK) Limited ('Adtranz'), Babcock today confirms that the disposal has
been referred to the Competition Commission for approval.

Babcock will assist the Competition Commission with the provision of
information as required.