Contract Extended

BICC PLC
4 August 1999


RAILTRACK EXTENDS BALFOUR BEATTY RAIL RENEWALS' CONTRACT
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Balfour Beatty, part of the BICC Group, announces today that Railtrack has
extended Balfour Beatty Rail Renewals' (BBRR) existing three year Southern
Zone Plain Line track renewals contract by a further two years from 2001 until
2003.  The value of the work will be some £60 million.

BBRR is the first contractor to have a renewals contract extended in this way.
The award reflects the company's performance on the contract so far and the
joint commitment with Railtrack to work towards future efficiencies and
innovations particularly in respect of avoiding disruption to the busiest part
of the rail network in the course of these essential activities.

Mike Welton, chief executive, Balfour Beatty, commenting on the award, said:
'The extension to this contract results from BBRR's commitment to delivering a
high level of service, whilst building on the achievements to-date, including
the company's excellent safety and performance record.'

Today's announcement follows the recent naming of Balfour Beatty as preferred
bidder for the £180 million Wessex maintenance contract.

Balfour Beatty Rail Renewals is also the first track renewals company to sign
up to Railtrack's new freight haulage and ballast supply agreement.  This has
been put into place to satisfy our joint requirement for better planning and
avoidance of change, in order to secure improvements to the freight haulage
service which is vital to the renewals operation.

Enquiries to:-
Tim Sharp
BICC Group
Tel: [phone]


Notes to Editors
================

-  BICC, through Balfour Beatty, is one of Railtrack's leading suppliers and
is an international leader in major rail engineering projects.  It offers a
complete service from design through construction and commissioning to asset
management and maintenance.

-  Balfour Beatty is currently undertaking a number of major projects in the
UK including the re-modelling of the approaches to Euston Station for
Railtrack as part of the new West Coast Main Line and major works on the
Channel Tunnel Rail Link.  The company is preferred bidder, in joint venture,
for the £200 million plus electrification contract, also for the West Coast
Main Line.

-  Overseas, Balfour Beatty is working towards the completion of the £250
million electrification of the line from Boston to New Haven in the USA for
Amtrak.  The company is also constructing the latest extension to the
Singapore Mass Rapid Transit System.