Re Contract

Balfour Beatty PLC
04 October 2004


4 October 2004


                        BALFOUR BEATTY WINS $480 MILLION
                           OF NEW CONTRACTS IN THE USA
                           ===========================

                Major new civil engineering contracts secured in
                California, Washington State, Texas and Maryland
                ------------------------------------------------
                                        
Balfour Beatty, the international engineering, construction and services group,
announces today that Balfour Beatty Construction Inc (BBCI), its US civil
engineering subsidiary, has won six major civil engineering contracts in the US
to a total value of approximately $480 million.

Commenting on these awards, Balfour Beatty Chief Executive, Mike Welton, said:
'These new awards further extend our presence in US transportation markets, as
federal and state expenditure on improving the US transport infrastructure
increases. We have had strong and profitable civil engineering businesses on the
West Coast of the US and in Texas for some years, both of which continue to
grow. Our new Central Division has now established itself as a major player in
Pennsylvania, Maryland and Ohio.'

The largest of the contracts is the $113 million scheme to widen approximately
five miles of Route 405 in Culver City in the greater Los Angeles area for
Caltrans. The project, which involves widening 26 bridges and placing over
70,000 cubic metres of retaining wall concrete and concrete pavement, is to be
completed in 37 months.

Also for Caltrans in California, BBCI is to widen eight miles of Route 15
between Escondido and Rancho Bernardo (San Diego) in two contracts totalling
$150 million, also to be completed in 37 months.

In Washington State, BBCI has won an $83 million contract for the rehabilitation
and extension of the Downtown Seattle Bus Terminal for Central Puget Sound
Regional Transit Authority. The project, scheduled for 27 months' duration, will
deliver key modifications to the existing bus tunnel and four underground
stations. Additionally, a 700 foot long tunnel extension will be constructed.
New trackwork is to be supplied and installed by Balfour Beatty Rail Inc.

In Texas, an $84 million project has been won for the upgrade of SH121 in Collin
County. This project, awarded by the Texas Department of Transportation, is for
the reconstruction of 5.05 miles of SH121 and 0.86 miles of SH289, replacing the
existing interchange to a three-level interchange, divided frontage roads and
main lanes, bridge demolition and construction, storm sewer installation, and
retaining walls. The project is due for completion in January 2008. Balfour
Beatty is a partner in the joint venture building the $1.2 billion SH130 tollway
and has won over $1.2 billion of work for Texas DoT since 1994.

Finally, the Maryland Department of Transportation has awarded a contract to
BBCI in excess of $48 million for improved safety and congestion relief at MD
450 in Prince George's County. The project involves constructing 1.24 miles of
railroad track for the grade separation of CSXT Railroad, eight retaining walls,
one temporary bridge and three permanent bridges to help eliminate traffic
backups resulting from the frequent train crossings.

BBCI now has a forward order book of over $1.25 billion.

                                      ENDS

Enquiries to:
Tim Sharp
Tel: [phone]
www.balfourbeatty.com

High resolution photographs are available to the media free of charge at
www.newscast.co.uk ([phone]).


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

1.  Balfour Beatty has approximate annual sales of $700 million and employs
    approximately 3,000 people in the US.

2.  Balfour Beatty serves the US markets for transportation (roads, bridges,
    rail, mass transit), education, healthcare and water management, with skills
    including civil engineering, rail engineering, design, project and programme
    management and architectural and engineering services. It has been 
    established in the US since 1986 and works through three operating 
    companies - Balfour Beatty Construction Inc, Balfour Beatty Rail Inc and 
    Heery International.

3.  Balfour Beatty is the UK's leading road widening specialist. It is currently
    widening Europe's busiest stretch of motorway between Junctions 12 and 15 
    on the M25 in a contract worth £148 million. Major new widening schemes 
    are currently in planning for a number of the UK's major motorways.

4.  Balfour Beatty is a world-class engineering, construction and services 
    group, well positioned in infrastructure markets which offer significant 
    growth potential. Its partnerships with public and private customers 
    generate secure, long-term income. Its financial position, with significant 
    net cash and with strong operating cash flows, offers continuing flexibility 
    to add additional capacity and expertise to the business mix and to make 
    appropriate investments in PPP/PFI and other long-term growth opportunities.




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