Newton and Babcock International Group Announce new Pulse Line Production Process for Military Vehicles

Leading UK Player in Engineering Support Services Chooses Newton to Enhance the Production of Tactical Military Vehicles for the British Armed Forces

LONDON, June 3, 2010 - Production of protected patrol vehicles under an Urgent Operational
Requirement (UOR), destined for frontline use by British troops in
Afghanistan, has taken a significant step forward in terms of efficiency
after the introduction of a new Production Management System that enhances
the production line at the manufacturer's Devonport Dockyard site. The
IT-based production management system has been developed, in conjunction with
Babcock, by Newton, Europe's leading operational and financial improvement
specialist.

Babcock, a major player in the engineering support services market, has
announced that it has successfully completed a three month-long project to
set up this production management system for controlling the assembly of
military vehicles. The development of the production line three years ago
enabled Babcock to control materials and labour flow during the production
process and to optimise output and reduce costs while maintaining high
quality standards. Newton's Pulse(TM) Production Management System is an
additional tool that enables Babcock's engineers to target more accurately
the way they plan assembly of the vehicles using modern efficiency measures
to reduce bottlenecks, track components and cut out time-consuming
procedures. Babcock managers are using Pulse(TM) to monitor, in real-time,
the status of the "flow" of vehicles along the production line to enable them
to get the best out of the line and re-deploy personnel and resources to best
effect.

For over a century, Babcock has been a name synonymous with
ultra-reliable engineering excellence and best practice. Babcock selected
Newton to help it develop and implement the pulse line as a result of the
company's proven background in manufacturing performance improvement and best
practices.

Babcock, whose customers include the Royal Navy, British Army and Royal
Air Force, has been preparing itself for future build contracts of modern
high value military vehicles. "We made a strategic decision to enhance the
efficiency of our production line. We wanted to better support our customers
by providing efficient, high quality and low cost assembly solutions," said
Chris Dunn, Land Systems Director at Babcock. "The Pulse(TM) Production
Management System has helped manage the variation of the build process, while
consolidating the cost per job."

The production line, now controlled using the Pulse(TM) Production
Management System, moves parts through 12 production cells. Pulse(TM)
collects real time data, providing visibility of the current status of the
line. This allows the production team to proactively respond to any issues,
as well as providing accurate planning and control of vehicles and materials.

"Newton's Pulse Production Management System was specifically adapted for
Babcock's current and future build contracts, helping to control variation in
cost, quality and the delivery of vehicles," said Kevin Jones, Director at
Newton. "It enables them to reduce build times, eliminate re-work, improve
materials management, alleviate quality deficiencies, reduce lost time and
predict material flow."

"With this new pulse line process, we will see significant benefits and
cost savings. We have already eliminated 250 hours per month of lost time on
the line and we foresee a 15-20% reduction in labour cost per vehicle," said
Roger Gillespie, Equipment Solutions Managing Director at Babcock. "We are
all really impressed by this system and the results it can deliver."

For more information visit: www.newtoneurope.com

    Contact Details -
    Media Relations for Newton Europe
    Nick Johnstone / Georgia Langdon at CMS Strategic
    +44(0)20-8748-9797
    nick.johnstone@cmsstrategic.com

Contact Details - Media Relations for Newton Europe, Nick Johnstone / Georgia Langdon at CMS Strategic, +44(0)20-8748-9797, nick.johnstone at cmsstrategic.com