Pre-Close Trading Statement

Babcock International Group PLC
29 March 2007


                                                                   29 March 2007



                       Babcock International Group PLC



                          Pre-Close Trading Statement



In line with its usual practice, Babcock International Group PLC ('Babcock' or '
the Group') the support services company, makes the following trading statement
prior to the close of its financial year on 31 March 2007.



Babcock is pleased to confirm that it expects the full year results to 31 March
2007 to be in line with its previous expectations expressed at the time of the
interim announcement in November 2006.



Our order book remains in excess of £2 billion and cash flow has been strong
throughout the second half of the year.  Our target markets have remained
buoyant and a number of important developments, which are outlined in this
statement, have occurred during the period, providing the Group with access to
significant potential growth opportunities.



Operations



Key developments for Defence Services in 2006 and 2007 include the award of an
extension to the Single Living Accommodation Modernisation or 'SLAM' contract
(known as SLAM II) and the securing of its position supporting the UK Hawk jet
trainer fleet by participation in the HAWK Integrated Operational Support or IOS
contract with BAE Systems PLC.



Contract award for the management of training and facilities at the Royal School
of Military Engineering, where the Babcock-led consortium is the preferred
bidder, is progressing toward financial close, which is expected towards the end
of the new financial year.



Babcock has previously confirmed that it is fully supportive of the MOD's
Defence Industrial Strategy ('DIS').  Babcock has been discussing various
possibilities with other industry participants and with the MOD in order to
progress the twin objectives of achieving industry restructuring consistent with
the DIS and delivering shareholder value.  Against this background Babcock has
made an indicative offer to acquire the entire share capital of Devonport
Management Limited ('DML').



In the past year Technical Services has been operating at a high level of
activity.  Babcock design teams have been engaged with both commercial contracts
and engagement in the design phase for the Future Aircraft Carrier (or 'CVF').
The recognition of Rosyth as the only facility in the United Kingdom appropriate
for final integration, test and commissioning of the aircraft carriers has had a
beneficial impact on the Group's warship support activities.  The need to
maintain a core capability for the programme, plus the performance of Babcock
through time, is being recognised in the allocation of warships for refit by the
surface support Alliance.



The Alstec nuclear support business has outperformed our planning assumptions
and is well placed to benefit from the accelerating pace of decommissioning and
reactor life extensions.  The Nuclear Decommissioning Authority forecast in 2005
/06 that total decommissioning activities in the United Kingdom would have a
value of some £62.7 billion over the coming years.  In January 2007, Babcock
acquired 24.5% of the issued share capital of International Nuclear Solutions
PLC ('INS'), a specialist operator in the nuclear engineering services sector at
63 pence per share.  Discussions are continuing with the Board of INS about the
possibility of making a cash offer for the remainder of INS's issued share
capital.  A combination of Alstec and INS together with our nuclear experience
at Rosyth and Faslane would create a comprehensive Tier 2 service offering for
nuclear site licencees and operators.



Engineering and Plant Services has achieved a record year of growth.  The South
African Government's commitment to infrastructure spending and further growth in
the resources sector continues to underpin confidence in the further growth of
this business.  In March, the South African Government launched a R97 billion
(£6.8 billion), five year investment programme to boost power generation.  The
acquisition of the South African power lines division of ABB in the summer of
2006 is performing well, with a four-fold increase in order book already
achieved.  We believe that the momentum being seen in the development of
infrastructure in South Africa will begin to be replicated in other Southern
African states and Babcock Africa is well placed to benefit from this
opportunity.



Earlier this month, Networks closed a contract as part of a joint venture within
the Energy Alliance (the Alliance) with National Grid PLC to maintain its
electricity transmission infrastructure across Western England & Wales.  The
contract is for an initial five year period and valued at some £100 million per
annum to the Alliance.  In addition, Babcock announced yesterday that its
transmission business has successfully pursued a contract to support EDF Energy
Networks in the South East of England over a five year period, valued at some
£10 million per annum.



As anticipated at the half year, mobile telecoms mast work has been slow and
therefore in the communications business within Networks, the emphasis has been
to focus on meeting the requirements of the digital switch-over, upgrading
technology for handling broadcast of the digital television signal.



During the year, the Rail business commenced a restructuring programme to align
it more closely with the new structure of its principal customer, Network Rail.
During the period, the business continued to win contracts, notably the two
signalling framework contracts which will secure work for the next five years,
and the £25 million Trent Valley capacity enhancement project also on behalf of
Network Rail.  We have also been short-listed as one of the final two bidders
for the Greater Manchester Passenger Transport Executive tramways infrastructure
bid.



Summary



The overall trading environment for the Babcock businesses remains excellent.
The order book is strong and markets in which Babcock is active continue to
offer significant growth opportunities.





For further information please contact:


Babcock International Group PLC
Bill Tame, Finance Director                                         020 7291 5000
Jeffrey Bradford, Head of Investor Relations

Financial Dynamics
Andrew Lorenz / Susanne Walker                                      020 7269 7121





About Babcock International Group PLC



Babcock International Group PLC is an asset management business.  Babcock
manages fixed infrastructure and mobile assets.  Babcock meets our customers
needs by leveraging its engineering skills base and project management
expertise. The Group focuses on adding value at the operational level working
alongside customers to manage their mission-critical infrastructure and assets.



In the year to 31 March 2006 sales from continuing business were £837 million.
In May 2005 Babcock acquired ALSTEC which applies engineering based services and
project management expertise to the civil nuclear support and decommissioning
market, airport baggage handling systems and niche defence activities.



The Group operates across five core business segments:



Defence Services, providing facilities management, equipment support and
training expertise to the British Armed Forces.



Technical Services, supports the activities of customers in the oil and gas,
defence, marine, nuclear and supply chain service markets.



Engineering and Plant Services provides design, installation, equipment and
maintenance support to the resource extraction and power generation and
transmission sectors. It also holds the Volvo franchise for construction
equipment in Southern Africa.



Rail provides a wide range of capabilities including track renewals, signalling,
control technology and rail power systems for the UK rail infrastructure.



Networks, operating under the EVE brand name, is a significant player in the
high voltage electricity transmission, mobile telecommunications and digital
television infrastructure in the United Kingdom.



The Babcock head office is in London, the United Kingdom and the Company's
shares are quoted on the London Stock Exchange in the support services sector
(EPIC:BAB).  For further information, please visit the Babcock website at
www.babcock.co.uk.


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            The company news service from the London Stock Exchange