Babcock Completes Disposal of Non-core Businesses

Babcock International Group PLC ("Babcock" or "the Group") has completed its programme of disposals of the non-core businesses acquired with Peterhouse Group PLC in 2004.

The disposal programme has been completed following the sale in February 2006 of the loss making IETG business, the environmental and flow monitoring unit (net assets approximately £0.1 million) and earlier this month, the disposal of EPS Gmbh, the German based events and site services business (net assets approximately £1.3 million); and the sale of Eve Trakway Limited, the UK based site access and events business (net assets approximately £8 million). All three businesses were sold to their respective management teams. The consideration received for these businesses was £8.0 million, including £2.3 million in unconditional deferred payments.

The turnover of these businesses in the period up to disposal totalled approximately £26 million of which circa £5.3 million related to IETG, which was reported within the Group's Health, Safety and Environmental division. Both EPS Gmbh and Eve Trakway Limited were reported within the Networks division.

Commenting on these transactions, Peter Rogers, Chief Executive Officer of Babcock, said: "The sale of these businesses brings to an end the disposal programme that was initiated following the acquisition of Peterhouse Group PLC. The nature of these operations did not align with the core activities and competencies of Babcock and we believe that their future development is more assured outside of the Group. We are now fully focused on growing our core businesses both organically and by acquisition."

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Posted 13/04/06

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