Re Contract

Balfour Beatty PLC
27 March 2003

                    WESSEX RAIL MAINTENANCE CONTRACT


Balfour Beatty, the international engineering, construction and services group,
has been informed by Network Rail that it intends to take direct responsibility
for maintenance in the Wessex region when Balfour Beatty's current contract for
carrying out this work expires at the end of March 2004.  Balfour Beatty has had
responsibility for maintenance in the Wessex area since it won the contract, in
competitive tender, in October 1999.  In 2002, maintenance turnover in the
Wessex region was approximately £80 million.

Balfour Beatty also has responsibility for maintenance in the Kent and Anglia
regions under contracts worth, in aggregate, approximately £130 million per
annum.  Both of these contracts run to the end of March 2006.  The company is
working closely with Network Rail in its Anglia zone in preparation for the
first introduction of the New Maintenance Programme later in the year.

Commenting on Network Rail's decision today, Balfour Beatty Chief Executive,
Mike Welton, said:  'We are surprised and disappointed by Network Rail's
decision, but recognise and respect their policy priorities in respect of
maintenance management.  In this context, we are working in close co-operation
with Network Rail in developing the new model for managing and executing the
maintenance programme and continue to look forward to playing a major part in
upgrading and developing the UK network.'

Arrangements for the orderly transfer of responsibilities and the TUPE transfer
of staff employed on the Wessex contract to Network Rail will be discussed and
agreed at the appropriate time.  Balfour Beatty will, of course, co-operate
fully with Network Rail to ensure that satisfactory service is maintained during
the handover period.

Balfour Beatty's worldwide rail business, which had 2002 sales of £838 million,
covers the full range of fixed infrastructure contracting, including
electrification and power systems, major rail development projects, trackwork,
the manufacture of track systems, signalling and the provision of specialist
plant and equipment as well as maintenance.  Approximately 50% of Balfour
Beatty's rail activity is outside the UK, with strong market positions in the
USA, Germany, Italy, Sweden, Spain, Portugal, Greece, Malaysia and elsewhere.

Balfour Beatty Rail will become a major supplier to the Metronet consortium
following the imminent financial close of the London Underground PPP
concessions.  Trackwork to the value of approximately £500 million will be added
to its order book at that time.



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




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