Analysts Meeting re PPP/PFI

Balfour Beatty PLC
26 June 2003

BALFOUR BEATTY PLC - PPP/PFI UPDATE



Balfour Beatty, the international engineering, construction and services group,
is, this evening, hosting a meeting with analysts and investors after close of
trading on the London Stock Exchange.  The slides used in the presentation,
together with further information, will be available within the investor
relations section of the Group's website at www.balfourbeatty.com from 9 am
tomorrow morning, 27 June 2003.



The presentation will provide an overview of Balfour Beatty strategy for its PPP
/PFI business, the details of its current portfolio and the returns which are
expected to be generated.  No trading update for the Group as a whole will be
given.



The government's PPP/PFI programme is aimed at providing improved and expanded
public services using the expertise and disciplines of the private sector.  It
seeks value for money from efficient service provision and on-time, on-budget
asset delivery.



Mike Welton, Chief Executive, said:  'The Group has established a PPP/PFI
portfolio that is set to be an increasingly important part of Balfour Beatty's
business mix.  The Group is maintaining a highly selective and risk managed
approach to PPP/PFI.  There is a clear focus on target markets and projects
which have an excellent strategic fit with Balfour Beatty's well-established
skills and operating capabilities.'



Balfour Beatty now has £158 million of committed investment in 16 PPP/PFI
concessions that have a total construction and services sales value to the Group
of £2.4 billion.  The total cumulative cashflows from the Group's existing
concessions to 2040 are expected to amount to over £1.1 billion.



Balfour Beatty's involvement in the PPP/PFI market is principally focussed on
the London Underground, healthcare, education and transportation.  Significant
further growth opportunities are available in each of these sectors.  Balfour
Beatty welcomes the recent commitment to PPP/PFI by the government, with the
signal that by 2005 a further £9 billion worth of projects are expected to be
signed in the health, education and housing sectors alone.



Enquiries to:

Tim Sharp

Tel: [phone]



A website dedicated to Balfour Beatty's involvement in PPP/PFI - http://
balfourbeattyppp.com - will be coming on-line on Friday 27 June.


                      This information is provided by RNS
            The company news service from the London Stock Exchange