Contract Signature - Dounreay PBO

2 April 2012

Babcock International Group PLC (Babcock or the Group)

Contract Signature - Dounreay PBO

Babcock Dounreay Partnership (BDP) has today, 2 April 2012, been formally awarded the contract to manage the decommissioning, demolition and clean-up of the Dounreay nuclear site having officially taken ownership of Dounreay Site Restoration Ltd (DRSL).

The contract awarded to BDP, a joint venture (jv) between Babcock, CH2M HILL and URS, by the Nuclear Decommissioning Authority (NDA) takes effect immediately and makes BDP the new Parent Body Organisation (PBO) for Dounreay. The total anticipated contract value to BDP is expected to be in the region of £1.6 billion. Babcock holds a 50% share of the jv.

BDP will be responsible for taking the decommissioning programme at Dounreay to its interim end state and has set out an accelerated programme to achieve this between 2022 and 2025 (up to 16 years earlier than the 2038 date estimated two years ago) and reducing project costs by well in excess of £1 billion.

Peter Rogers, Chief Executive of Babcock commented

'We are delighted to have become the PBO for Dounreay. We have established a world-class partnership and are looking forward to using our international decommissioning and site management expertise to complete this major decommissioning and closure programme.'

Enquiries

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Bill Tame - Group Finance Director

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Andrew Lorenz

Nick Hasell