Disposal

Balfour Beatty PLC
14 July 2004


14 July 2004


              BALFOUR BEATTY COMPLETES THE SALE OF ANDOVER CONTROLS
                     TO SCHNEIDER ELECTRIC FOR $403 MILLION
                     ======================================

Balfour Beatty, the international engineering, construction and services group,
announces today that it has completed the sale of Andover Controls, its US-based
building management and security controls business, to Schneider Electric for
$403 million. The consideration has been paid in cash.

Balfour Beatty took the strategic decision that the disposal of Andover
represented the best value to its shareholders, given increasing competitive
pressures and accelerating consolidation and change in the building controls
market. The sale, at a multiple in excess of 15 times historic earnings, will
result in an exceptional profit to Balfour Beatty of more than £100 million.

Shortly after announcing its agreement to sell Andover Controls in May 2004,
Balfour Beatty announced its intention to acquire Skanska's 50% interest in
Gammon, the leading Hong Kong based construction company, jointly owned by
Jardine Matheson. The acquisition will provide Balfour Beatty with a significant
presence and a strong partner in a regional market with good growth potential.

Due diligence in respect of this transaction is well advanced.

                                      ENDS

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



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