Acquisition

Balfour Beatty PLC
14 October 2002

BALFOUR BEATTY ACQUISITIONS IN UTILITY SERVICES AND ELECTRONIC ACCESS CONTROL
SYSTEMS



Balfour Beatty, the international engineering, construction and services group,
announces today that in two separate transactions it has acquired Walgrave
Contracting Services, a UK distribution cable service provider, and Security
International, a US electronic access control systems business.  The initial
cash consideration for these two transactions is approximately £8 million.



Walgrave, a privately owned company, will become part of Balfour Beatty Power
Networks, the Group's international overhead power line and cabling arm.
Security International will become part of Andover Controls, the US building
management control systems designer and controller.



Walgrave works principally with East Midlands Electricity and 24 Seven.  It has
current annual sales of approximately £20 million which are anticipated to grow
in future years as annual contracts are extended and the market expands, as a
result of both increased outsourcing and the growth of the privately-financed
street lighting market.



The acquisition broadens Balfour Beatty's existing portfolio of skills in the
growing utility services market.  This includes Balfour Beatty Power Networks
with annual sales of approximately £120 million and John Kennedy and Kentons
with combined current annual sales of approximately £160 million.  Kennedy and
Kentons supply upgrade and maintenance services to the gas and water markets.



Security International is a provider of single source electronic access control
solutions to the security systems market.  Together with Integral Technologies,
acquired in July 2000, it will form a new security system division within
Andover Controls.



The acquisition provides enhanced market access and a strong management team
with extensive experience in the US distribution network for access control and
related systems and products.



Commenting today, Balfour Beatty Chief Executive, Mike Welton, said: 'These
acquisitions further enhance our capability in two important growth markets.  In
both cases we are acquiring sound businesses with good customer relationships
and first-class management and technical capability'.





Enquiries to:

Tim Sharp

Tel: [phone]

www.balfourbeatty.com


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