Disposal

Balfour Beatty PLC
28 June 2007


28 June 2007


                BALFOUR BEATTY COMPLETES THE SALE OF ITS INTEREST
             IN DEVONPORT MANAGEMENT LTD TO BABCOCK FOR £86 MILLION
             ======================================================


Balfour Beatty, the international engineering, construction, services and
investment group, has today completed the sale of its 24.5% interest in
Devonport Management Ltd (DML) to Babcock International plc (Babcock) for a cash
consideration of £86 million.

DML was established in 1987 to run Devonport Royal Dockyard, which it then
acquired in 1997. It offers a complete range of design, build and support
solutions across both the defence and commercial sectors, including nuclear
submarine refit, refuelling and maintenance.

Commenting on completion of the transaction today, Balfour Beatty Chief
Executive, Ian Tyler, said:

'Devonport Management has been a very good investment for Balfour Beatty and we
are pleased to have played a part in the success of the enterprise. However,
long-term involvement in DML is not core to our strategy and the sale represents
excellent value for our shareholders.'

The disposal will lead to an exceptional profit of approximately £50 million in
Balfour Beatty's 2007 accounts. The cash proceeds will be used to continue to
develop Balfour Beatty's business in line with its stated strategy.

                                      ENDS

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



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