Re Contract

Balfour Beatty PLC
3 July 2002



                      BALFOUR BEATTY SECURES $1.4 BILLION

                            TEXAS TOLL ROAD CONTRACT


Balfour Beatty plc, the international engineering, construction and services
group, announces today that Lone Star Infrastructure, a consortium comprising
Balfour Beatty Construction Inc, the group's US civil and specialist engineering
company, Fluor Corporation and T J Lambrecht Construction, has been awarded $1.4
billion contract for the design, construction and maintenance of State Highway
130, a new 90-mile toll road, by the Texas Department of Transportation (TxDOT).
This follows the consortium's selection as best value bidder in April of this
year.

Commenting on the contract award, Mike Welton, Chief Executive of Balfour Beatty
plc, said: 'This is the largest single highway project in Texas and, together
with major recent contract awards in rail and construction, demonstrates the
strength of our position in US infrastructure markets.  It is a further
important step in our objective of increasing our presence in the USA'.

Once completed, SH 130 will cover 90 miles from the I-35 north of Georgetown to
the I-10 near Seguin.  Construction is due to begin in early 2003.  The road
will be opened for use by the public in phases.

Balfour Beatty Construction Inc has carried out eight of the 12 contacts let by
the North Texas Turnpike Authority for the new Dallas area outer ring road
system.  In total, the business has carried out $500 million of road and
interchange building in Texas since 1994 and has a current order book of over
$180 million in the state.

Bill Miller, Senior Vice President, Balfour Beatty Construction Inc, who has led
the Balfour Beatty bid, said: 'We have an excellent long-term working
relationship with the Texas Department of Transportation and are delighted to be
able to extend our expertise to this latest contract.'

Balfour Beatty has businesses in the US with an aggregate turnover of
approaching $1 billion.  It recently announced the award of some $300 million of
new rail contracts in Boston and San Diego.

Balfour Beatty is a leading international engineering, construction and services
group.  Its aim is to create shareholder value by providing engineering,
construction and service skills to customers for whom infrastructure quality,
efficiency and reliability are critical.  The company serves the international
markets for rail, road, power and other utility systems, buildings and complex
structures.


Enquiries to:

Tim Sharp
020 7216 6884
www.balfourbeatty.com


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