Re Contract

Balfour Beatty PLC
02 April 2003

BALFOUR BEATTY JOINT VENTURE APPOINTED BY NETWORK RAIL FOR INNER LONDON SOUTHERN
POWER UPGRADE PROJECT



Balfour Beatty, the international engineering, construction and services group,
announces today that Balfour Beatty Rail Projects, in joint venture with
Seeboard Contracting Services, has been appointed by Network Rail as the
preferred contractor to upgrade the power supply to the rail network in the
inner London area.



Network Rail has signed a seven-year framework agreement with the joint venture
which is likely to generate approximately £50 million of work during 2003 and
2004.  The framework agreement is one of four such agreements announced today.



Commenting today, Balfour Beatty Chief Executive, Mike Welton, said:  'We are
pleased to be working with Network Rail and Seeboard on this important project
which further extends our existing wide-ranging working relationship with
Network Rail and will help facilitate the introduction of new, reliable rolling
stock by the train operating companies.'



The work involves the design and construction of new and upgraded sub-stations,
the design and installation of high voltage switchgear and other equipment and
the replacement of cabling systems.  The work is due to commence in late spring
of this year.



Since August 1998, a joint venture between Balfour Beatty and Seeboard has been
responsible for operating, maintaining, financing and renewing London
Underground's high voltage power distribution network under a 30-year PPP
concession.



Enquiries to:

Tim Sharp

Tel: [phone]

www.balfourbeatty.com



Notes to Editors



1.         Balfour Beatty is a leading supplier to Network Rail.  Amongst other
major projects, it is responsible, in joint venture, for the electrification of
the West Coast Main Line from Euston to Glasgow and substantial parts of that
line's wider infrastructure upgrade.  It is the UK's largest manufacturer of
switches and crossings, a leading supplier of specialist rail plant and is
involved in over £250 million per annum of track renewals and maintenance work.



2.         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.



3.         In 2002, Balfour Beatty's sales in rail engineering and services
amounted to £838 million, approximately 50% of which was from outside the UK.
The Group has strong market positions in the USA, Germany, Italy, Sweden, Spain,
Portugal, Greece, Malaysia and elsewhere.




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