Stmnt re Railcare

Babcock International Group PLC
13 December 2000

Date:          Wednesday 13th December 2000

Contact:     Gordon Campbell

              Chief Executive

              Group Finance Director

          Babcock International Group PLC

          Telephone: [phone]

          Ginny Pulbrook

          Director

          Citigate Dewe Rogerson

     Telephone: [phone]


                   BABCOCK ANNOUNCE JOB LOSSES AT RAILCARE

Babcock International today announced its intention to implement some 250
redundancies from a total workforce of 900 at their Railcare subsidiary which
is jointly owned with Siemens.

Railcare, which maintains and refurbishes trains, has been losing money for
over twelve months as a consequence of declining demand and fierce
competition. Babcock therefore has no alternative but to propose the
redundancies, some of which have been announced earlier, in order to return
the business to profit in the market conditions that now prevail.

Job losses will be principally centred at Wolverton (200) and the finalisation
of the redundancy programme already under way at Springburn (Glasgow).
Consultations with the workforce and Unions will commence immediately.

Railcare was to have been sold to Adtranz, a subsidiary of Daimler Chrysler,
but the sale was referred to the Competition Commission by the Office of Fair
Trading. The sale therefore lapsed.

Babcock stated that the job losses were necessary to re-position the company
in the current trading climate but the intention remained to sell Railcare.