Re Contract

Balfour Beatty PLC
05 June 2007


5 June 2007


          BALFOUR BEATTY SECURES OVER $1 BILLION OF NEW US PROJECT WORK
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             Heery expands its capabilities with Miami acquisition
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Balfour Beatty, the international engineering, construction, services and
investment group, announces today that its US subsidiaries, Balfour Beatty
Construction LLC, Balfour Beatty Infrastructure, Inc. and Heery International,
have recently secured new project work with a total value of approximately
$1.1 billion.

The largest contract, which has been won by Heery International, is the design
and build project for a new $230 million Federal Correctional Institution
located at Berlin, New Hampshire, for the Federal Bureau of Prisons, a long-term
Heery client. One of the largest public works contracts ever undertaken in the
state, the 1,200-inmate medium security institution also includes housing,
educational, vocational, healthcare and administration space and is scheduled
for a 37-month design and construction programme.

Additionally, Heery International has recently completed the acquisition of
Sequeira & Gavarrete, the Miami-based design and architectural project
management firm. In addition to creating a strong South Florida presence, this
acquisition significantly extends Heery's aviation sector expertise. Sequeira &
Gavarrete are responsible currently for the programme management for the
$2.6 billion North Terminal Development and the $300 million Intermodal Centre
Rental Car Facility at Miami International Airport.

Balfour Beatty Infrastructure, Inc., the Group's US civil engineering arm, has
secured new highways projects near Austin and Houston in Texas and near Los
Angeles for the respective State Departments of Transportation, with a total
value in excess of $200 million. The largest is for a 10-mile four-lane stretch
of highway to connect US 183 and Interstate 35 near Austin, Texas, which is
scheduled to commence construction in mid-June.

Balfour Beatty Construction LLC (formerly Centex Construction) has won over $540
million of new work in the period since its acquisition which was completed on
March 30th of this year.

In the military housing sector, it has recently secured two major new awards for
the US Army. These are for 675 new homes at Fort Jackson in South Carolina and
158 new homes at the US Military Academy at West Point in New York in contracts
valued at approximately $200 million.

Other recent project announcements include the $180 million Pueblo of Pojoaque
resort and casino, 12 miles north of Santa Fe in New Mexico; the $107 million
Vanderbilt University Medical Centre in Nashville, Tennessee; and the
$140 million 33-storey Atlantic Centre building in Fort Lauderdale, Florida,
that city's first hurricane-resistant building, comprising Class A office space
and a retail and restaurant complex.

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

'We have a strong and growing presence, with annual revenues in excess of
$3.5 billion, in selected building and infrastructure markets in the US, which
offer us a variety of high-quality opportunities. We anticipate further growth
in our already substantial order book as we continue to build on our wide range
of proven long-term customer relationships.'

                                      ENDS

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


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

1.  Heery International is a 1,000-person architecture, interior design,
    engineering, facility management, project management and construction
    management firm responsible for managing nearly $5 billion in construction
    per year. Heery is recognized annually by US industry publications such as 
    'Building Design & Construction' and 'Engineering News Record' as one of the 
    nation's leading firms.

2.  Balfour Beatty Construction, based in Dallas, Texas, is one of the US's
    leading commercial building companies with annual revenues in excess of $2
    billion. Its business activities are concentrated in the high-growth states 
    of Texas, Florida and North Carolina and in Washington DC.

3.  Balfour Beatty Infrastructure, Inc., based in Atlanta, is a leading civil
    engineering company with substantial and successful state-based businesses 
    in California and Texas and in tunnelling technology.

4.  Balfour Beatty Rail Inc is a national multidisciplinary contractor based in
    Jacksonville, Florida.

5.  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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