Response to VT and BAE

Babcock International Group PLC 23 March 2006 23 March 2006 Response to VT Group plc and BAE Systems plc announcements Babcock International Group plc ('Babcock') notes today's announcements by VT Group plc ('VT') and BAE Systems plc ('BAE Systems') that these two companies have been exploring the possibility of a bid for Babcock and confirms that no approach has been received. Over the last five years, Babcock has transformed itself from an engineering conglomerate into a focused support services and asset management business, managing fixed infrastructure and mobile assets. This transformation has generated substantial shareholder value including an increase in Babcock's share price from 59p to more than 250p prior to today's announcements. The Group currently has an order book in excess of £2bn, and in December 2005 was selected as a member of the Aircraft Carrier Alliance to construct the bow block and carry out the associated detailed design. In addition Babcock will support the Alliance in procurement and other elements of the programme. In Babcock's half year statement of 15 November 2005, the company stated that the first half of the year had fully met its expectations, with underlying operating profit increasing by 21% to £25.2 million. Peter Rogers, Chief Executive, said, 'we expect further progress to be made in the second half and the full year result to be ahead of our original expectations.' In line with its regular practice, Babcock will make a trading statement next week prior to entering its close period for the full year ending 31 March 2006. For further information please contact: Babcock International Group PLC Gordon Campbell, Chairman 020 7269 7291 Financial Dynamics Andrew Lorenz / Susanne Walker 020 7269 7291 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 £745 million. In June 2004 Babcock acquired the Peterhouse Group which brought; Rail and Networks 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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