Babcock Regulatory News (BAB)

25 June 2014

Babcock International Group PLC (Babcock, the Group)

Contract Announcement - Sellafield Silos' Maintenance Facility

We are delighted to announce that a joint venture led by Cavendish Nuclear, the UK's largest specialist nuclear support services organisation, with partner Balfour Beatty, has been instructed to construct a major new decommissioning support facility at Sellafield.

Phase 3 of the Silos' Maintenance Facility contract worth a total of £160 million, is effective immediately and follows the first two phases of work undertaken by the joint venture in preparation for the new facility. Completion of the first two phases included the £5.5 million concept and preliminary design phase, and the £12.5 million detailed design and enabling works phase. Construction is expected to be complete by 2017.

The joint venture, of which Cavendish Nuclear has a 55% share, will construct a new facility to service equipment to be used in the retrieval of historic radioactive waste from silos - a high-priority for hazard reduction at Sellafield. Built to exacting nuclear standards, it will provide for receipt, decontamination, inspection, maintenance and storage of retrieval equipment. The joint venture will also deliver comprehensive training for Sellafield employees in the operation of the facility.

The announcement further extends Cavendish Nuclear's role as a key supplier of engineering, radiological and environmental services across the Sellafield site, including the decommissioning of critical assets such as the pile fuel cladding silo and the recent successfully completed sludge treatment facility for the pile fuel storage pond. Cavendish Nuclear also continues to support the Nuclear Decommissioning Authority across its estate following the recent Preferred Bidder announcement for the Magnox/RSRL competition.

ENDS

Notes to Editors

Cavendish Nuclear

Cavendish Nuclear is the UK's largest specialist nuclear support services organisation, with a 3,800 highly-qualified workforce. Cavendish Nuclear brings together the rich heritage of the UK's capabilities in nuclear energy to offer unrivalled experience and expertise across the life cycle of nuclear power plant. This expertise, combined with its experience as a nuclear site licensee and operator, enables Cavendish Nuclear to provide safe, effective solutions for the entire nuclear lifecycle, from design and build, through operation and maintenance, to decommissioning, waste management and remediation.

Cavendish Nuclear has established a world class civil nuclear engineering business with decommissioning projects in the UK and internationally as well continuing to develop its prime position within the nuclear new build programme in the UK.

Cavendish Nuclear is a wholly-owned subsidiary of Babcock International Group PLC. (www.cavendishnuclear.com)