Rail Contracts

Balfour Beatty PLC
1 August 2000


BALFOUR BEATTY SELECTED AS PREFERRED BIDDER FOR £600 MILLION RAIL MAINTENANCE
CONTRACTS
=========

Balfour Beatty, the international engineering, construction and services
group, announces today that it has been selected by Railtrack as the preferred
bidder for three major rail maintenance contracts.  These are:

-  The £250 million, five-year contract to maintain the East Coast Main Line
between London Kings Cross and the Scottish border, due to begin on 1 January
2001

-  The £200 million, five-year contract to maintain all lines in Kent, due to
begin on 1 April 2001

-  The £150 million, five-year contract to maintain all lines on Great Eastern
& Anglia, due to begin on 1 April 2001.

Under each of the new IMC 2000 contracts, there is an option for extension for
a further five years.  Balfour Beatty is already responsible for maintenance
in the three areas under the RTIa contracts, which expire at the end of March
2001, and has achieved preferred bidder status through competitive tender in
each case.

Over the past three years, Balfour Beatty has contributed to a significant
reduction in train delays in these three zonal areas.

Commenting today on the achievement of preferred bidder status, Balfour Beatty
Chief Executive, Mike Welton, said:

'We are delighted to have been retained by Railtrack for the maintenance of
the East Coast Main Line, Great Eastern & Anglia and Kent under the new
contractual arrangements.  We are committed to the rail industry and believe
that we can significantly improve the efficiency of the maintenance process in
partnership with Railtrack.

'The new contract form rewards performance and efficiency improvements and
affords greater scope for alliance working with Railtrack, which is a key
factor in further improving performance and customer service.'

Under the contracts, performance will be evaluated through key performance
indicators, jointly agreed and monitored by the contractor and the client.

Balfour Beatty's rail maintenance service is built on effective planning,
introducing new management tools and new technology, continuous improvement to
all processes and practices and a strong focus on reliability and
predictability in rail infrastructure performance.  The company has already
introduced new skills from other industries and will continue to do so in the
future.

During 1999, the company's investment in new technology, including automated
track inspection equipment, plant and asset management systems was
substantially increased.  For example, Balfour Beatty's new integrated asset
management system, AM 2000, has already been introduced on the East Coast Main
Line and its new high-speed, train-mounted Inspection 2000 System will be used
to provide a constant flow of data on track condition across the maintenance
areas.

Enquiries to:-
Tim Sharp
Balfour Beatty plc
Tel: [phone]
www.balfourbeatty.com


Notes to Editors
----------------

1.  Balfour Beatty is the UK's largest rail engineering and rail services
company, with a turnover in rail of approaching £400 million per annum.

2.  Balfour Beatty has expertise which ranges from high-speed rail to mass
rapid transit, covering intercity, rural and commuter routes.  It covers
maintenance, trackwork, overhead and third-rail electrification, signalling,
power supply systems, switches and crossings and civil engineering for main
lines, metros and light rail systems.

3.  Balfour Beatty is the principal provider of maintenance services to
Railtrack and is the leading UK manufacturer of switches and crossings.

4.  Balfour Beatty Rail Maintenance has more than 3,500 employees and
substantial experience of all railway types and is the market leader.  The
company has ISO 9000 accreditation for each region and has approved Railway
and Contractor Safety Cases.  It has led the industry in developing asset
management systems which are critical to the future of the industry.

5.  Balfour Beatty's current UK project work includes the £170 million Euston
approaches remodelling contract and the West Coast Main Line overhead
electrification contract for Railtrack, which is likely to be worth in excess
of £400 million.  It is also working on the Channel Tunnel Rail Link and on
redeveloping the approaches to Leeds station on the East Coast Main Line.

6.  The group's international project work encompasses current and recently-
completed projects in the USA, Hong Kong and Singapore.