Babcock Relents on Wyser-Pratte Demand for Shareholders Meeting; Wyser-Pratte to Nominate Mr. Werner Engelhardt as Supervisory Board Chairman.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 14, 2002

Wyser-Pratte Management Co. Inc. (WPM) received word today that Babcock Borsig (BBX-GR) has given in to WPM demands to convene an extraordinary general meeting (EGM) of shareholders, scheduled for August 14-15.

It remained unclear what the formal EGM agenda would be.

WPM had previously demanded full shareholder approval of any sale of control of Babcock's shipbuilding subsidiary HDW to Bank One Equity Partners. In addition, WPM has obtained two separate court injunctions blocking the deal from proceeding, pending the EGM. Meanwhile, Babcock maintains that the transaction had already been completed. The matter is set for a court hearing June 27, 2002.

"Finally, we are going to get to the bottom of this mess", said WPM President, Guy Wyser-Pratte. "Babcock officers and directors continue to act as though they are above the law and can trample on shareholder rights. We believe the court injunctions prevent the HDW sale from occurring and that shareholders must have the opportunity to confirm or reject the sale at the EGM," Wyser-Pratte stated.

WPM has made formal demands for an EGM since March but Babcock has refused. WPM then filed suit in German court to force a meeting, calling for a vote of no confidence in Babcock management, submission of the HDW deal for shareholder approval and removal of the supervisory board. "We are not sure what agenda Babcock is planning but we will have the right to propose our own agenda items. I can assure you the EGM will be a frank and illuminating exercise in shareholder rights," said Wyser-Pratte.

"I am especially delighted to report that Mr. Werner Engelhardt (56), formerly chairman of the supervisory board of Rheinmetall A.G., has agreed to serve as nominee for chairman of the Babcock supervisory board, replacing Friedel Neuber. We are anxious to help get the Babcock/HDW situation rectified," Wyser-Pratte concluded.

WPM is a Manhattan based investment fund manager.