Re Contract

Balfour Beatty PLC
13 December 2007


13 December 2007


    BALFOUR BEATTY WINS SEVEN-YEAR INTEGRATED FM CONTRACT FOR BRITISH ENERGY
                  WITH A POTENTIAL VALUE OF OVER £350 MILLION

         Important further step in developing the Group's integrated FM
          services business following recent acquisition of Covion Ltd
          ------------------------------------------------------------

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that it has been awarded a seven-year
contract, with a potential annual value of £50 million per annum, by British
Energy Generation Limited for the facilities management of British Energy's
portfolio of eight nuclear power stations and two office complexes across
England and Scotland.

Balfour Beatty will provide additional support to British Energy in outages,
projects and other infrastructure related services.

Commenting on the award, Balfour Beatty Chief Executive, Ian Tyler, said:

'We are delighted to have been chosen to carry out this extremely important work
for British Energy, with whom Balfour Beatty has had a positive working
relationship for over 30 years. The award recognises the all-round strength of
the Balfour Beatty Group and our capability in integrating our specialist skills
to meet specific customer need.'

Under the contract, Balfour Beatty will be responsible for providing a range of
services to the nuclear power stations at Hunterston B and Torness in Scotland,
Heysham 1 and 2 and Hartlepool in the north of England, Sizewell B in East
Anglia and Hinkley Point B and Dungeness B in the South.

Bill Coley, Chief Executive of British Energy, also commenting today, said:

'British Energy's business strategy includes strategic alliances with quality
partners. Balfour Beatty has proven to be a quality supplier, and this contract
recognises our confidence in them as an important partner in achieving the long
term goals of our company.'

Services will be provided by a Balfour Beatty Group team comprising Haden
Building Management, Balfour Kilpatrick and Balfour Beatty Management.

                                      ENDS

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

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

1.  Among the services to be provided under this contract are likely to be
    mechanical and electrical maintenance, industrial, transportation and
    accommodation services and waste management, cleaning, security and vending.

2.  On 18 October, Balfour Beatty announced that it had acquired Covion, the
    facilities infrastructure services business, for £33 million. Covion 
    provides property, technology, people and facilities management services in 
    integrated packages to the manufacturing facilities and corporate business 
    sectors and has been one of the fastest-growing companies in the UK in 2005 
    and 2006.

3.  Balfour Beatty's annual revenues in facilities management will exceed
    £300 million in 2007. The Group had an FM order book, before securing this
    contract, of over £1 billion.

4.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well-positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet
    individual customer need. Balfour Beatty's 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 and other long-term growth 
    opportunities.




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