1 September 2008

Babcock International Group 

£3 billion Royal School of Military Engineering Contract Signed 

Babcock International Group PLC (Babcock) announces that Financial Close has been achieved on the Royal School of Military Engineering Public Private Partnership (RSME PPP) contract.   The signing of the 30 year contract significantly enhances Babcock's long-term position in the military training market.  

The £3.0 billion contract will be delivered by Holdfast Training Services Ltd, a joint venture between Babcock and Carillion Plc. Babcock will be providing training and training support as well as both hard and soft facilities management services and expects its part of the contract to be worth £1.5 billion over the period..  The contract will also deliver improved living accommodation and create new training facilities at the RSME and will become operational in January 2009.

Babcock Chief Executive Peter Rogers comments:

"We have worked in close partnership with the Ministry of Defence for a number of years to bring this major project to a successful conclusion. We look forward to working with our partners to provide world-class training and facilities management services for the RSME.  

This contract significantly strengthens our order book, which now stands at over £5 billion, and underpins the long term performance of our business." 

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