Statement re Hatfield

Balfour Beatty PLC
07 October 2005


7 October 2005

                           THE HATFIELD RAIL ACCIDENT
                           ==========================

Balfour Beatty Rail Infrastructure Services (BBRIS) has been fined and ordered
to pay costs following its plea of guilty to charges brought under Section 3 of
the Health and Safety at Work Act in respect of the Hatfield rail accident.

Hatfield was a tragedy and our thoughts remain with the bereaved families and
with those injured and otherwise affected by it. BBRIS, in entering its plea of
guilty, accepted inadequacies in its patrolling and inspection activities, for
which it apologises.

It is, however, clear that the accident arose as a result of a systemic failure
of the industry as a whole. At no stage did BBRIS work outside the industry
standards on patrolling and inspection as they were constituted before the
accident. At the time of the accident, the phenomenon of gauge corner cracking
(GCC) was little understood. Immediately following the accident, over 2,400 GCC
sites were identified for testing and rerailing and the standards governing its
management were radically revised.

There were also failings to rerail Welham Green Curve and to grind the rail in a
timely manner, but these did not form any part of the prosecution case. Both
actions were recommended by BBRIS many months before the accident. The
responsibility for rerailing and grinding lay with Railtrack and other
contractors. At the trial, Railtrack accepted that it failed to ensure the site
was rerailed on time.

The detailed inquiry into the causes of the accident carried out by the Rail
Safety and Standards Board, completed a year after the derailment, confirmed a
multiplicity of contributory factors.

The Balfour Beatty Group has a strong safety culture and tightly managed safety
systems. The health and safety of the public and of its employees is paramount
in everything that the company does. The company will be considering the
judgement in detail.

                                      ENDS

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

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

A press release dated 8 October 2001 can be found on the RSSB website
(www.rssb.co.uk) on the Hatfield Inquiry Report setting out the report's
findings and main recommendations.




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