Re Contract

Balfour Beatty PLC
21 June 2001

                  £110 MILLION SUPPORT SERVICE CONTRACT WIN

                              FOR BALFOUR BEATTY



Five-Year Road Management and Maintenance Contract Awarded for Highways Agency
                                    Area 3



Balfour Beatty, the international engineering, construction and services
group, announces today that its specialist subsidiary, RCS, has been awarded
the contract for term maintenance for Area 3 trunk road and motorways by the
Highways Agency. The contract is valued at £110 million over five years with a
possible two-year extension, commencing on 1 September 2001. This brings
Balfour Beatty's annual highways management and maintenance turnover to in
excess of £100 million.

Balfour Beatty Chief Executive, Mike Welton, commenting on the award today,
said:

'We are delighted to have been selected for this major contract. We have
established a leading market position in road management and maintenance
through our work for the Highways Agency, local authorities and our own
Design, Build, Finance and Operate road schemes. This, together with our
growing premises maintenance and management business and a strong position in
rail infrastructure maintenance, provides a quality, stable, long-term
earnings stream for the group'.

The contract for Area 3 covers an extensive area of the network in southern
England and includes strategic routes carrying high volume traffic such as the
M3 motorway and the eastern section of the M4 motorway. Balfour Beatty already
has the contract for Area 2 at a value of approximately £15 million per year.

RCS was awarded the current Area 3 contract in February 1997, the first such
maintenance contract to be let by the Highways Agency. The company's
reappointment for the next five to seven years on this job, following a
stringent tendering process in which the emphasis was on service quality,
reflects the standard of the company's performance.



Enquiries to:-

Tim Sharp

Tel: [phone]

www.balfourbeatty.com



Notes to Editors

 - Balfour Beatty maintains local authority roads in Hampshire, Surrey,
Bedforshire, Buckinghamshire and Worcestershire and its own DBFO road schemes
in Devon, Dorset and Derbyshire.

- Balfour Beatty has IMC 2000 maintenance contracts for Railtrack for Kent,
Anglia & Great Eastern and Wessex, with a total annual value of approximately
£125 million.

- Balfour Beatty, through Haden Building Management, has an order book of over
£500 million for facilities management and maintenance. Amongst its principal
contracts are those for the BBC, British Telecom, Shell, KPMG, Royal Bank of
Scotland, the QE2 Conference Centre, the Benefits Agency and Balfour Beatty's
PFI hospital schemes at North Durham and Edinburgh.