August

Canaccord Genuity advises Babcock on its recommended offer for INS

On 26 January 2007, Babcock International Group ("Babcock") acquired a 24.5 per cent. stake in International Nuclear Solutions ("INS").

On 4 April 2007, Babcock announced a recommended proposal to acquire, for 63 pence per INS share in cash, the existing issued share capital of INS not already owned by Babcock (the "Offer") by means of a Court sanctioned scheme of arrangement (the "Scheme"). The Offer valued the existing issued share capital of INS at approximately £39.3 million.

On 19 June 2007, Babcock entered into option agreements with major shareholders of INS to acquire 18.8 per cent. of the existing issued share capital of INS at 63 pence per INS share. Babcock had, in addition, received irrevocable commitments to accept the offer from the directors of INS in respect of a further 0.4 per cent. of the existing issued share capital of INS.

As a result, together with the 24.5 per cent. stake in INS acquired on 26 January 2007, Babcock had acquired or had the option to acquire 43.7 per cent. of the existing issued share capital of INS.

Accordingly, the board of Babcock announced a final recommended mandatory cash offer under the provisions of Rule 9 of the City Code of 63 pence per INS share to acquire the existing issued share capital of INS not already owned by Babcock (the "Final Cash Offer"). The Final Cash Offer replaced the Scheme.

The Final Cash Offer became wholly unconditional on 9 July 2007 and closed on 31 August 2007, at which time Babcock had acquired or had received valid acceptances for 63.6 per cent of the issued share capital of INS.

Canaccord Genuity is Babcock's retained adviser and acted as sole financial adviser on the offer.

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