Re Contract

Balfour Beatty PLC
11 January 2008


11 January 2008


  GAMMON CONSTRUCTION AWARDED HK$4.94 BILLION CONTRACT FOR THE NEW GOVERNMENT
                              COMPLEX IN HONG KONG

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Gammon Construction, Hong Kong's leading
construction company, in which Balfour Beatty has a 50% interest, has been
awarded the contract for the design and construction of the new Central
Government Complex for Hong Kong - known as the Tamar Development Project.

The contract, which will be executed in joint venture with Hip Hing
Construction, is worth HK$4.94 billion (£320 million). The project involves the
design and construction of the Central Government Complex, the Legislative
Council Complex, a major recreational open space, two elevated walkways and car
parking and ancillary facilities.

The design provides a unifying architectural composition within which each of
the principal buildings will have their own unique designs and identity. The
total gross floor area will be approximately 130,000 square metres. At its 
height, over 3,000 people will be working on site. The project is scheduled for 
completion in 2011.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'We are honoured and delighted to have been awarded this important project by
the Hong Kong government. The award further emphasises Gammon's pre-eminent
position in the Hong Kong construction market and recognises the company's
outstanding technical strengths and experience.'

                                      ENDS

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


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

1.  Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine
    Matheson, the major Asian trading and manufacturing group.

2.  Gammon is the leading contractor in Hong Kong with annual revenues of
    approximately £500 million and 2,000 employees. It is also a leading player 
    in the fast growing markets of Singapore and Macau, where it recently 
    completed the £230 million Venetian Hotel and Casino complex.

3.  Amongst its current major projects in Hong Kong are the Kowloon Southern 
    Link comprising West Kowloon Station and the connecting tunnel valued at 
    £140 million and the £150 million contract to build One Island East, a 
    70-storey office building on the Eastern Shore of Hong Kong Island.

4.  Between April and August 2007, it secured the £55 million Chinatown
    Interchange Station project in Singapore, a £33 million project to design 
    and construct infrastructure for the University of Hong Kong and a £50 
    million project to construct a retail podium and a 42-storey, 2,000-room 
    hotel tower for Venetian Orient.

5.  In November, Gammon Capital became preferred bidder for the £90 million
    Institute of Technical Education PPP project in Singapore.

6.  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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