Re Contract

Balfour Beatty PLC
18 July 2005


18 July 2005



      MANSELL SECURES FIRST PHASE OF FIVE-YEAR MASTERPLAN CONTRACT FOR NEW
     ACCOMMODATION AT RAF LAKENHEATH WITH A POTENTIAL VALUE OF £127 MILLION
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Balfour Beatty, the international engineering, construction and services group,
announces today that its subsidiary, Mansell, the construction and property
services company, has been awarded the first construction phase, under a
masterplan contract, to redevelop accommodation facilities for United States Air
Force staff and their families at RAF Lakenheath in Suffolk.

The £14.5 million project has been awarded under the Framework Partnering
Contract to replace USAF housing stock at Lakenheath with 89 new dwellings. The
£1.3 million design work for phases 2 and 3, which will have a combined
construction value of £53 million, is already under way, with the entire project
(for 606 new dwellings) likely to have an overall value of £127 million once
completed.

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

'Mansell has made excellent progress since it became part of the Balfour Beatty
Group at the end of 2003. Its order book has grown by 35% to £438 million since
it joined the Group, its position in the fast-growing social housing market has
been further strengthened and the work coming through its long-term framework
agreements with blue chip customers has continued to expand.'

Mansell's relationship with the USAF goes back to 1945. The US government makes
a very substantial investment in the education and training of armed forces and
the very high housing design standards required for its forces serving overseas
reflects this.

                                      ENDS

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


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

1. Mansell is a specialist construction and building services company with
annual sales in excess of £550 million. It was acquired in December 2003 for a
consideration of £42 million. The company serves the social housing, defence,
education, interior solutions, airports, telecommunications, heritage and health
markets.

2. Mansell recently launched a new brand, 'Mansell Partnership Housing', to
spearhead its rapidly growing presence in the social housing market. In this
market, it has a forward framework workload in excess of £300 million.

3. As a member of the Balfour Beatty Group, Mansell is in a position to take
advantage of substantial opportunities in the PFI market.

4. 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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