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1st March 2000

BBA Aviation Services Acquisition of Oxford Aviation for £55.4 million

BBA GROUP PLC announces that it has acquired Oxford Aviation from Close Investment, part of Close Brothers Group, for a consideration of £55.4 million on a debt free, cash free basis. The consideration is to be satisfied in cash out of BBA's existing resources.

Oxford Aviation is based at Oxford Airport, UK, and is the leading provider of professional pilot training in the European market. Its reputation and strong brand name attract a high quality customer base including several of Europe's largest airlines. The pilot training market is one of the fastest growing areas of aviation services.

In addition to the physical training facilities provided at Oxford Airport, Oxford Aviation has developed a European 'virtual training college' through the Internet. This Internet training service enables Oxford Aviation to exploit the trend for pilots to complete a substantial part of their training course by distance learning, allowing the company to broaden its available market. This is an important capability that BBA will develop further.

Oxford Aviation also has a substantial overhaul and maintenance business and a fixed based operation (FBO) at the airport servicing the general aviation market.

For the year ended 31 December 1999, Oxford Aviation generated unaudited turnover of £37 million. Over the last 3 years sales have grown at an average rate in excess of 20 per cent per annum. The acquisition is expected to be earnings enhancing in the first full year.

Commenting on the acquisition, Roberto Quarta, BBA Group PLC Chief Executive, said:

"BBA Aviation Services' entry to the high growth pilot training market is an exciting strategic move as we continue to expand our range of services even further. The acquisition of Oxford Aviation strengthens BBA's ability to capitalise on the current trend of greater outsourcing of services by corporate, commercial and regional airlines.

"Oxford Aviation will also provide a strategic base to roll out our full range of aviation services in Europe, where we see an excellent opportunity to develop a network similar to the market leading position we have established in the US."

ENQUIRIES:

Roberto Quarta, Chief Executive, BBA Group PLC, 020 7842 4900
Roy McGlone, Finance Director
Susan Gilchrist/Nigel Prideaux, Brunswick, 020 7404 5959