Re Contract

Balfour Beatty PLC
04 June 2003

NEW BAA CONSTRUCTION CONTRACT FOR BALFOUR BEATTY AT HEATHROW TAKES GROUP'S
TERMINAL 5 PROJECT WORK TO OVER £180 MILLION


Balfour Beatty, the international engineering, construction and services group,
announces today that its subsidiary, Balfour Beatty Construction (BBCL), has
been appointed Production Leader and Fit Out contractor for the £87 million Rail
Station and Passenger Interchange for BAA at Heathrow Airport, Terminal 5.


The Group, through an integrated joint venture of its subsidiaries, Balfour
Beatty Rail and Balfour Kilpatrick, is already at work on the £95 million
contract to extend both the Heathrow Express and the LUL Piccadilly Line from
the existing Central Terminal Area to Terminal 5.


Commenting on the awards today, Balfour Beatty Chief Executive, Mike Welton,
said:  'The confidence which BAA has shown in the multi-disciplinary experience
and capabilities of the Balfour Beatty Group to help in the creation of the new
Terminal 5 is very gratifying.  It demonstrates the Group's strengths and
leadership in the development and delivery of public infrastructure.'


The BBCL construction works involve the leadership and fit out of the new
station, including the design and construction of all finishes, mechanical,
electrical, glazing, steelwork, lifts, escalators and communication and control
works.  The project is due for completion for the opening of the new Terminal in
spring 2008.


In the work already under way, Balfour Beatty is undertaking overall project and
programme management as well as all the new trackwork, the traction power system
and all the mechanical and electrical works for the new station and passenger
interchange areas.


In addition, Balfour Beatty Civil Engineering was, last month, awarded a
contract to construct the Stage 2 Heathrow Terminal 5 Spur Road as part of the
£148 million Highways Agency contract to widen the M25 between Junctions 12 and
15.


All of these contracts are part of the development of BAA's Terminal 5 project
at Heathrow Airport to provide first-class transport infrastructure to better
meet increasing aviation demand and changing customer needs.





Enquiries to:

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




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