Re Contract

Balfour Beatty PLC
12 June 2006


12 June 2006

  BALFOUR BEATTY WINS ROAD AND RAIL CONTRACTS WORTH APPROXIMATELY £160 MILLION
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Balfour Beatty, the international engineering construction and services group
announces today that it has been awarded road and rail contracts worth
approximately £160 million.

In the US, Balfour Beatty Construction Inc, the group's civil engineering
subsidiary, has been awarded a $193 million contract by the California
Department of Transportation (Caltrans) to upgrade Interstate Highway I-5 in
Orange County, California. The project, which will be carried out in joint
venture, involves the improvement of two miles of highway and six bridges in the
Buena Park area.

In China, Balfour Beatty Rail Power Systems, the group's Munich based rail
electrification and power supply business, has been awarded a €78 million
project to electrify 619 kilometres of double track railway between Tianjin and
Shenyang in Liaoning Province. In addition to a new overhead catenary system the
project involves 11 new traction substations and electronic interlocking and
other signal equipment installation.

Work on both projects starts immediately.

Balfour Beatty Construction Inc has a strong long-term position in the
Californian transportation market. It has a successful track record of working
with Caltrans including the creation and maintenance of the Alameida rail
corridor link to Los Angeles Port and the seismic retrofit of the Golden Gate
Bridge in San Francisco to increase its resistance to potential earthquake
impact.

Balfour Beatty Rail Power Systems has wholly owned foreign enterprise status in
China. It was responsible for the largest Chinese Rail electrification project
to date - delivering the complete catenary and power supply systems for the 950
kilometre double-track line between Harbin and Dalian.

                                      ENDS

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

Notes to Editors

1. Balfour Beatty Construction Inc builds roads, tunnels, bridges and other
infrastructure, principally for the transportation market in the US. It is based
in Atlanta. Its principle operations are in California, Texas, Pennsylvania and
Ohio. It has annual sales of over £300 million.

2. Balfour Beatty Rail Power Systems is a world leading railway electrification
and power supply business based in Munich. It is a major supplier to the
national rail network owners in Germany, Italy, Sweden, Spain and Austria and
has other substantial operations in Portugal, the Netherlands and China. It has
annual sales of over £300 million.

3. 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,
sustainable 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 and other long-term growth opportunities.




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