Babcock Regulatory News (BAB)

11 February 2011

Babcock International Group PLC

Contract win

Babcock wins €200m facilities management contract to supportBritish forces' bases in Germany

Babcock International Group PLC (Babcock), the UK's leading engineering support services company, has been awarded a new contract by Defence Estates to provide facilities management (FM) services at British Forces bases across Germany.

The five-year contract, valued at c €200 million (c £170 million), will see Babcock deliver planned and reactive building maintenance, grounds maintenance and minor new works to support the British Forces' buildings, assets and estate at 12 stations, predominantly in the German states of Lower Saxony and North Rhine-Westphalia. Mobilisation of the contract will start immediately, with service delivery starting in August 2011.

This the first time that Defence Estates has outsourced a major facilities management contract in Germany to a private sector partner. Babcock has worked closely with Defence Estates to develop a cost-effective and flexible solution, capable of evolving in response to the significant changes planned to the MoD footprint as service personnel return to the UK.

Peter Rogers, Group Chief Executive commented"I am delighted we have been awarded this major facilities management contract, the first that Defence Estates has outsourced in Germany. Building on our track record of high quality delivery of two Regional Prime contracts for Defence Estates in the UK, we have worked closely with them to develop the cost-efficient and flexible solution they require.

Babcock is looking forward to working closely with Defence Estates and all those involved with the current service delivery in Germany."

Enquiries

Babcock International Group PLC 020 7355 5300

Peter Rogers

Bill Tame

Terri Wright

FD

Andrew Lorenz 07775 641 807

Nick Hasell 020 7269 7291