Acquisition

Balfour Beatty PLC
02 August 2007


2 August 2007


                  BALFOUR BEATTY STRENGTHENS BUSINESS MIX WITH 
                            THREE NICHE ACQUISITIONS

                    Bolt-on acquisitions completed in rail,
            professional and technical services and road management
            =======================================================

Balfour Beatty, the international engineering, construction and services group,
announces today that it has completed three niche acquisitions which strengthen
its position in the European rail, professional and technical services and road
management and maintenance markets at an aggregated cost of approximately
£9 million.

Commenting on these acquisitions today, Balfour Beatty Chief Executive, Ian
Tyler, said:

'We continue to strengthen our business through acquisition where appropriate
opportunities arise. Through these three transactions in market areas where we
already have strong businesses, we have both further improved our market
position and added to our earnings growth potential.'

In Sweden, Balfour Beatty Rail has acquired Carillion's Swedish rail contracting
company. The business, which had 2006 sales of SEK 418 million, has a broad
range of capabilities including in trackwork, electrification and power supply,
multi-disciplinary and maintenance projects. The business will be merged with
Balfour Beatty's existing multi-disciplinary Swedish rail operations, which were
recently also strengthened by the acquisition of SAAB's Nordic rail signalling
and communications operations, and the combined business will be well-placed to
take advantage of the significant anticipated growth in the investment
expenditure of Banverket, Sweden's mainline network owner and operator, as well
as in Norway and Denmark.

In the UK, Balfour Beatty's fast-growing professional and technical services
arm, Balfour Beatty Management (BBM), has acquired the NAP Partnership, based in
Middlesbrough. NAP has annual sales of approximately £6 million and provides
cost and contract consultancy and project management services to a variety of
clients in the north of England. The acquisition strengthens BBM's presence in
the north of England and broadens the range of services that it can offer in
that region as part of the expansion of its regional service capability.

Also in the UK, Balfour Beatty Infrastructure Services (BBIS), the Group's road
management and maintenance arm, has acquired Chris Britton Consultancy, one of
the UK's leading consulting engineering companies in the highways and pavement
management sector. The company offers specialist services relating to pavement
engineering, network management and asset management and its acquisition is an
important step in growing BBIS's professional services capability.

                                      ENDS

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


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

1.  Balfour Beatty's rail business in Sweden is currently working on the major
    Botniabanan trackwork and electrification contract and track modernisation 
    work on the Blekinge coastline, amongst other projects. Balfour Beatty Rail 
    AB has capabilities in rail electrification and power supply, trackwork, 
    signalling, maintenance and multi-disciplinary projects.

2.  Balfour Beatty Management employs approaching 500 professional staff in
    providing design, programme management, project management and other 
    specialist technical services to major infrastructure owners. Amongst its 
    current major projects are for National Grid in upgrading the electricity 
    and gas networks, Northern Gas Networks and project management for the new 
    Kings Cross Underground Station for the Department for Transport.

3.  Balfour Beatty Infrastructure Services is a leading UK road management and
    maintenance company. Amongst its major clients are the Highways Agency, for 
    whom it manages the strategic road network in the south of England from the 
    Channel Tunnel to the West Country, and a number of regional and local 
    authorities, including North Yorkshire, Hampshire, Essex, North West 
    Scotland and the City of Westminster in London.

4.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet 
    individual customer need. 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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