AGM Statement

Balfour Beatty PLC
11 May 2006


11 May 2006

                               BALFOUR BEATTY PLC

                                 AGM STATEMENT
                                 =============

Reporting to shareholders at the Annual General Meeting of Balfour Beatty plc,
the international engineering, construction and services group, Chairman, Sir
David John, said:

'As is our customary practice, I would like to update you on trading so far this
year.

'I am pleased to report to shareholders that trading in 2006, to date, is in
line with expectations. Order intake has been strong in the year so far. Our
order book now tops £8 billion and will shortly be augmented by the confirmed
contracts arising from the financial close of the Birmingham Hospital PPP
concession. Last month we entered a pre-qualification submission, as part of the
G3 group, for the role of Delivery Partner to the ODA in respect of the 2012
London Olympics.

'In our Building sector, early progress has been good, with continuing growth in
expenditure on affordable housing and a number of sizeable contract wins in both
public and private sectors. The acquisition of Charter, the US construction
management and services company, was completed in late March.

'In Engineering, progress is also good. Balfour Beatty Power Networks has
secured several major new orders and RCS, the road management and maintenance
company, has been successful in extending two of its long-term local authority
contracts.

'In Rail, good progress continues on major works at Heathrow Terminal 5 and on
track renewal work for Network Rail and London Underground. Market conditions in
Europe and the USA remain unchanged. The acquisition of Edgar Allen, the rail
track products manufacturer, was completed in March.

'In Investments and Developments, concession performance is as anticipated.
Financial close was reached in early April on the Birmingham Schools project.
Also in April, it was announced that our PPP concession for Birmingham Hospital
had successfully passed a Treasury Review. Financial close on this project is
anticipated in early June.

'As stated in our Annual Report, we expect to make progress in 2006 in line with
expectations and to continue to generate secure, sustainable income from our
partnerships with customers in the public and private sectors.'

                                      ENDS

Enquiries to:

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


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