Re Contract

Balfour Beatty PLC
11 September 2007



11 September 2007

   BALFOUR BEATTY CONFIRMED AS LONG-TERM RENEWALS CONTRACTOR TO NETWORK RAIL
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Current responsibilities for renewals across the South East confirmed following
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             Network Rail decision to reduce suppliers from 6 to 4
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Balfour Beatty plc, the international engineering, construction and services
group, is pleased to announce that Network Rail has selected Balfour Beatty Rail
as one of its four renewals contractors under the new arrangements that have
been announced this morning.

Balfour Beatty Rail will continue to be responsible for plain line and switches
and crossings renewals across the South East, under existing contractual
arrangements which run to April 2009. Balfour Beatty has been responsible for
these activities since April 2004 under a contract worth approximately £90
million per annum.

Commenting on the Network Rail decision, Balfour Beatty Chief Executive Ian
Tyler said:

'We are delighted to have our position as one of Network Rail's long-term
renewals contractors confirmed. We look forward to working with Network Rail in
delivering value for money and a top quality product in creating a world-class
UK rail network.'

Network Rail Group Infrastructure Director, Peter Henderson, commenting on the
decision said:

'Longer-term security for the successful contractors coupled with improvements
in our ability to define and plan the work will enable us to create an
environment whereby we can all plan with confidence, promote innovation and
invest in equipment and people.'

                                      ENDS

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

Notes to Editors
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 1. Balfour Beatty is the world's leading fixed rail infrastructure contractor
    with operations in over 20 countries, delivering major multi-disciplinary
    projects, trackwork, electrification and power supply, signalling,
    specialist plant, track systems and components and maintenance services.


 2. Balfour Beatty is responsible for all rail renewal work for the Bakerloo,
    City and Victoria lines and for the sub-surface lines on the London
    Underground system.


 3. Balfour Beatty, in joint venture, is responsible for the £363 million project
    to create the new East London line between Dalston Junction in the North and
    West Croydon in the South - a key part of the transport infrastructure for
    the 2012 London Olympics.


 4. Balfour Beatty is a leading supplier of electrification and power supply
    services to Network Rail, Deutsche bahn, the Italian and Swedish state
    railway systems and many other network owners.


 5. Balfour Beatty is close to completion of the project to deliver and integrate
    the rail systems and build and commission the track transit system for
    Heathrow Terminal 5 for BAA.


 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. 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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