Re Contract

Balfour Beatty PLC
19 April 2001

19 April 2001


                    FURTHER EXPANSION FOR BALFOUR BEATTY'S

                  ASSET MANAGEMENT AND MAINTENANCE BUSINESS


            Haden Building Management Wins Two New Major Contracts

                    and Extends Order Book to £400 Million


Balfour Beatty, the international engineering, construction and services
group, announces today that its asset and facilities management arm, Haden
Building Management, has been awarded two long-term building management
contracts.

The first is a five-year contract for KPMG, which covers 42 sites spread
across the United Kingdom, providing the management and execution of
electrical, mechanical and building fabric maintenance.

The second is the five-year contract for the management and maintenance of
some 330 buildings within the business estate in London and the south of
England for the Royal Bank of Scotland. The arrangement will also involve
specific project work in conjunction with one of Haden's service partners, AEA
Technology, as well as the introduction of Haden's integrated IT system
including national help desk and the facility for hand held technology.

Commenting today, Balfour Beatty Chief Executive, Mike Welton, said, 'The
continuing growth of Haden Building Management is a key part of Balfour
Beatty's increasing involvement in outsourced services, which now account for
more than 30% of our sales'.

The KPMG and Royal Bank of Scotland contracts, which have an estimated total
value of approaching £40 million, further extend Haden Building Management's
order book to approaching £400 million, most of which is in long-term
contracts within the public and private sectors. These include: the total
facilities and building management of the new North Durham Hospital, which
becomes operational in the spring; the maintenance for the complete school
stock in the Stoke area; the integrated facilities management and maintenance
of the new Edinburgh Royal Infirmary; and a substantial proportion of the work
involved in the recently-signed contract for the complete facilities
management and maintenance of BT's UK property portfolio as a partner in the
SPV, Monteray Ltd.



Enquiries to:

Tim Sharp

Tel: [phone]

www.balfourbeatty.com