Re Contract

Balfour Beatty PLC
19 September 2007


19 September 2007


                 BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR THE
              £77 MILLION TAMESIDE AND GLOSSOP PFI HOSPITAL PROJECT
              =====================================================

Balfour Beatty, the international engineering, construction and services group,
announces today that its specialist healthcare concession company, Consort
Healthcare, in conjunction with HSBC Infrastructure Fund Management Limited, has
reached financial close on the £77 million Tameside and Glossop Acute Services
NHS Trust PFI project in Greater Manchester.

The project is part of the 'Northern Batch' Scheme, which comprises both
Tameside and the £136 million scheme for the Salford Royal NHS Foundation Trust,
which reached financial close last week.

Commenting on the financial close of the project, Balfour Beatty Chief
Executive, Ian Tyler, said:

'The financial close of the Tameside Hospital project is the second part of the
Northern Batch scheme, following last week's close of the £136 million Salford
project. We very much look forward to working with the Trust and to using our
in-depth expertise in planning, constructing and operating PPP hospitals, to
create the highest standards of patient care in Tameside.'

Tameside and Glossop Acute Services NHS Trust Chief Executive, Christine Green,
said:

'This is excellent news. The new hospital facilities will see the realisation of
the vision for healthcare that hospital clinicians and our partner organisations
set out at the very start of our bid to achieve this major investment. I am
absolutely delighted that this final approval means that we can now focus on
delivering this vision for the people of Tameside and Glossop.'

In Tameside, Consort will redevelop and provide new buildings on the existing
hospital site, under a 34-year PFI concession contract. Consort Healthcare
(Tameside) will procure the design, construction, operation and maintenance of
an acute hospital development, a new facility for older people with mental
health problems, energy centre and surface car park facilities at the existing
Tameside General Hospital site in Ashton-under-Lyne, Greater Manchester. As with
Salford Hospital, the construction will be carried out by Balfour Beatty
Construction, Haden Young will perform all the electrical and mechanical systems
work and Haden Building Management will supply all facilities management
services. The buildings have been planned to complement the existing estate and
combine the retained buildings within an overall site master plan that will
provide modern medical facilities for patients.

The facilities will provide both in-patient and out-patient accommodation,
theatres, children's facilities, an acute hospital development, a new facility
for older people with mental health problems and other facilities.

Construction is due to commence immediately with an overall completion planned
for 2011.

                                      ENDS

Enquiries to:

Tim Sharp
Tel: [phone]

www.balfourbeatty.com


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

1.  Balfour Beatty is a leader in the UK PPP market with approximately
    £350 million committed investment in 24 operational projects and a further 
    five at preferred bidder stage.

2.  Balfour Beatty's existing PPP hospital schemes are as follows:

    - £90 million Durham Hospital (opened 2001)

    - £220 million Edinburgh Royal Infirmary (opened 2003)

    - £280 million University College London Hospital (Phase 1 opened 2005)

    - £116 million Royal Blackburn Hospital (opened 2006)

    - £553 million Birmingham New Hospitals (under construction; due to open 
      2011)

    - £311 million Pinderfields and Pontefract Hospitals (under construction;
      due to open 2009/10)

    - £136 million Salford Hospital (due to open 2012)

    - £77 million Tameside Hospital (due to open 2011)

    - £152 million Fife Hospital (preferred bidder).

3.  Balfour Beatty is the construction partner to Canmore Partnership Ltd in the
    PPP concession for the new Victoria and Stobhill Hospitals in Glasgow. This
    project, which began in August 2006, involves some £180 million of design 
    and construction work and is due for completion in spring 2009. In Glasgow, 
    Balfour Beatty is also building the new mental health secure unit at 
    Stobhill and the new Beatson Institute cancer research facility at Garscube.

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, long-term 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/PFI and other long-term growth opportunities.




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