Disposal

Babcock International Group PLC 25 July 2005 Date: 25 July 2005 Contacts: Franco Martinelli Andrew Lorenz/Richard Mountain Babcock International Group PLC Financial Dynamics Telephone: +44 (0)20 7291 5000 Telephone: +44 (0)20 7269 7291 BABCOCK EXITS NON-CORE HEALTH & SAFETY TRAINING BUSINESS Babcock International Group PLC ('Babcock') is pleased to announce the sale of the Pivotal Services Group, the health and safety training and product supply business, to Hire Station Limited, a subsidiary of Vp plc, for cash consideration of £4.5 million. Pivotal Services was a subsidiary of the Peterhouse Group acquired by Babcock in June 2004 and formed part of Babcock's non-core Health, Safety and Environmental business. The business generated sales of £7.9 million in the period to 31 March 2005. Commenting on the sale, Peter Rogers, Chief Executive of Babcock said 'We are now well on the way to completing the exit from the health, safety and environment businesses. Pivotal was not a core business for Babcock and its future should be more secure with Vp plc who have an excellent reputation in the health and safety equipment and training markets.' - ends - Notes to editors: About Babcock International Group PLC Babcock International Group PLC is an asset management business. We manage fixed infrastructure and mobile assets. Babcock integrates labour, technical capabilities, systems and supply chain partners to meet the outsourcing needs of customers for 'mission-critical' capabilities. In the year to 31 March 2005 sales from continuing business were £760 million. In June 2004 Babcock acquired the Peterhouse Group which brought; Rail, Networks and Health, Safety and Environmental to the Group. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support and training services to the armed forces. Technical Services, providing engineering and logistical support to both the defence and civil sectors in the UK. Engineering and Plant Services supplying design, installation and maintenance support to the energy sector in Africa and the US. It also holds the Volvo franchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK rail infrastructure. Networks, supporting the design, maintenance and renewal of power transmission and cellular telecommunications networks in the UK. Babcock's head office is in London and the Company's shares are quoted on the London Stock Exchange in the support services sector (EPIC:BAB). For further information, please visit Babcock's website at www.babcock.co.uk. This information is provided by RNS The company news service from the London Stock Exchange
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