Preferred Bidder

Balfour Beatty PLC 4 February 2002 BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR £200 MILLION THAMESLINK 2000 POWER CONTRACT Balfour Beatty, the international engineering, construction and services group, is pleased to announce today that it has been appointed preferred bidder for the Permanent Way and Electrification Infrastructure Package contract for Thameslink 2000, a contract eventually likely to be worth at least £200 million. The company has begun work on the project development and definition stage of the contract, which will be the largest single package in the Thameslink 2000 infrastructure improvement programme. Commenting on the award, Mike Welton, Balfour Beatty Chief Executive, said: 'We are delighted to have been selected to carry out the largest contract on this vital project, which will create dedicated Thameslink routes through London, facilitating a threefold increase in the hourly capacity for Thameslink trains to travel through the capital. 'The contract, which requires new trackwork, track renewals, electrification, power supply reinforcement and installation, rail plant operation and maintenance expertise, amply demonstrates Balfour Beatty's unrivalled range of engineering capabilities in the rail sector.' David Howarth, Railtrack's General Manager for the Thameslink 2000 programme, said: 'I am very pleased to announce the award of this contract to Balfour Beatty. This is a further significant step forward for the programme and we look forward to working with the Balfour Beatty team to deliver a substantial and vital part of the overall programme.' Thameslink 2000 is a major infrastructure project to expand and improve the existing Thameslink route which connects London's suburban and south coast routes with Luton and Bedford to the north. The enhanced Thameslink network will not only facilitate the operation of more and longer trains on the existing routes, but will also extend the services to Peterborough and King's Lynn in the north and Guildford and Ashford in the south. Award of the contract will mean that Balfour Beatty will be responsible for the overall and detailed design and installation of all track, power supplies and electrification and assessing and adapting and strengthening existing structures, some of which date back to the Victorian era. Balfour Beatty will provide Railtrack with a 'one-stop shop' for a wide range of disciplines and activities requiring sophisticated and coherent interface management. The development and definition process begins with immediate effect, with the principal works scheduled to begin in the summer of 2003, depending on the outcome of the Public Inquiry into the TWO Order for Thameslink 2000. Enquiries to: Tim Sharp Tel: 020 7216 6884 Notes to Editors 1. Balfour Beatty's worldwide turnover in rail engineering and services will be approximately £800 million in 2002. 2. In the UK, Balfour Beatty Rail is a major supplier to Railtrack, including major infrastructure development work on the West and East Coast Main Lines in electrification and infrastructure upgrades; infrastructure services provision to an annual value of over £200 million, principally in Wessex, Kent and Anglia & Great Eastern; the manufacture and supply of switches and crossings; the supply of specialist rail plant; and the provision of specialised technologies and technical expertise. Balfour Beatty is also undertaking major project work on the Channel Tunnel Rail Link. 3. Through Balfour Beatty Rail Power Systems, the company is a leading international rail electrification and power supply specialist. With annual sales of €350 million, Balfour Beatty Rail Power Systems has strong market positions in Germany, Austria, Sweden, Spain, China, Malaysia and South America. In December of 2001, it acquired the rail electrification project business of ABB for €42 million. This further strengthened Balfour Beatty Rail Power Systems's position as market leader for rail electrification and power supply projects through additional major presences in Italy, Portugal and Greece. Principal current contracts are the €100 million Harbin-Dalian Line in China, the €60 million Nurnberg to Ingolstadt Line in Germany, three high-speed line projects in Italy, the Athens to Thessaloniki line in Greece, the Porto Metro system, the €24 million Madrid to Barcelona high-speed line in Spain, a €22 million project in Sao Paulo in Brazil and a €21 million main line project from Qinhuangdao to Shenyang in China. 4. In the USA, Balfour Beatty is a market leader in trackwork through Marta Track Constructors Inc and Metroplex Corporation and a specialist in signalling technology and engineering through Balfour Beatty Rail Systems Inc. It was responsible for the $500 million electrification of the new high-speed North-East Corridor link between Boston and New Haven for Amtrak. Current work includes major projects in San Francisco, Los Angeles, Dallas, New Jersey and Pittsburgh. It recently won the first maintenance contract ever let to an independent contractor in the USA for a heavy freight line in Los Angeles. Many major rail development projects in the US are currently in the prequalification and bidding process and federal appropriations for future high-speed and mass transit rail transportation projects stand at record levels. This information is provided by RNS The company news service from the London Stock Exchange
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