Re Contract

Balfour Beatty PLC
08 December 2005


8 December 2005

  BALFOUR BEATTY AWARDED NEW PLANT CONTRACTS BY NETWORK RAIL WORTH £66 MILLION
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Balfour Beatty plc, the international engineering, construction and services
group announces today that Balfour Beatty Rail has been awarded two new
contracts by Network Rail, worth up to £66 million over three years, with an
option to extend for a further two years.

The contracts are for tamping and ballast regulating services in the South East
territory and East Midlands area.

Work will commence immediately on mobilising for the new contracts which will
commence on 1st April 2006.

Commenting on the contract awarded, Balfour Beatty Chief Executive, Ian Tyler
said:

'We are delighted to have secured these contracts to provide plant to all
Network Rail's maintenance, renewals and projects requirements within the two
areas. This provides an excellent addition to Balfour Beatty Rail Plants'
forward order book.'

The contracts are for the provision of twenty-four machines in the South-East
covering Kent, Sussex, Wessex, West Anglia and Great Eastern; and the provision
of four machines in the East Midlands.

Balfour Beatty Rail is one of Network Rail's leading suppliers of track renewals
services following the award of new five-year renewals contracts in April 2004.
Balfour Beatty Rail is also responsible, through Metronet, for the track
renewals programme for London Underground on the Bakerloo, Central, Victoria and
Sub-Surface Lines in a programme likely to be worth approximately £500 million
in the first 7 1/2 year concession contract period.

                                      ENDS

Enquiries to:

Tim Sharp
Tel: [phone]

www.balfourbeatty.com




Notes to Editors:

 1. Balfour Beatty is the world's leading fixed rail infrastructure contractor
    with annual sales of over £750 million and a forward order book well in
    excess of £1 billion. It has substantial market positions in a number of
    national rail markets including the UK, Germany, Italy, Spain, Portugal,
    Austria, Sweden, Hong Kong and Singapore.

 2. Balfour Beatty Group, through an integrated joint venture of its
    subsidiaries, Balfour Beatty Rail and Balfour Kilpatrick, is currently
    working on the £95 million contract to extend both the Heathrow Express and
    the LUL Piccadilly Line from the existing Central Terminal Area to Terminal
    5 at London's Heathrow Airport

 3. Balfour Beatty was recently awarded the £110 million contract to
    substantially complete the overhead electrification component of the UK's
    West Coast Main Line modernisation programme.

 4. In November, Balfour Beatty Rail announced that it had been awarded major
    rail contracts in Australia and Singapore with a combined value of over £100
    million.

 5. 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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