Volvo Expanding Activities in South Africa

Babcock International Group PLC
30 May 2000


Contact:  Ginny Pulbrook or Oskar Yasar
          Citigate Dewe Rogerson
          0171 638 9571

        Volvo expanding its activities in South Africa


Babcock International Group PLC announces that its South
African subsidiary, Babcock Equipment (S.A.), has been
appointed the dealer in South Africa for Volvo Construction
Equipment, one of the business areas of the Volvo Group of
companies.  Babcock will not only act as distributors but
provide support services to the Volvo fleet in the region.
                               
'Babcock has been in the construction equipment business in
South Africa for over 50 years.  With our network of branches
in all of the major centres, and together with the regional
presence and backup support of a global company in Volvo, we
will be able to provide top quality products and service to
both existing and new Volvo Construction Equipment customers'
said Barry Wicking, Managing Director of the Company.

'The complimentary strengths of the two companies will ensure
a highly effective partnership able to really boost the brand
name of Volvo in the construction equipment business in this
region.'  said Christian Capelle, the recently appointed
managing Director of Volvo Southern Africa (Pty.) Ltd.

Volvo Construction Equipment is one of the largest
manufacturers of construction equipment in the world,
supplying a full range of product lines in wheel-loaders,
articulated haulers, hydraulic excavators, motor graders and
compact equipment.