Re Contract

Balfour Beatty PLC 13 April 2006 13 April 2006 BIRMINGHAM PFI HOSPITAL GETS THE GO AHEAD ========================================= Financial close anticipated shortly for £559 million University Hospital, Birmingham ------------------------------- It was announced yesterday that the £559 million University of Birmingham PFI Hospital scheme had been given the green light to proceed after a Treasury review. The hospital will be financed, built and operated under a 35-year concession by Balfour Beatty's PFI healthcare vehicle, Consort Healthcare. The partners for the scheme are Royal Bank of Scotland and HSBC. The construction work will be carried out by a joint venture between Balfour Beatty Construction Ltd and Haden Young, the building services arm of the Balfour Beatty Group. Facilities management will be provided by Haden Building Management Ltd, another Balfour Beatty subsidiary, under an arrangement that could yield over £300 million of long-term service revenue. Financial close is anticipated in the next few weeks. Consort Healthcare is already the PPP concession company for three major hospitals, two of which are fully operational. These are the North Durham Hospital, which was opened in 2001, and the Edinburgh Royal Infirmary, which became fully operational in early 2003. Construction work for the new Blackburn Hospital is well advanced. Balfour Beatty is also a partner in Health Management Group, the concession company responsible for the new University College London Hospital, the first phase of which opened in 2005. It was also in the joint venture responsible for its construction. Consort Healthcare is also preferred bidder for the Pinderfields and Pontefract Hospitals in Yorkshire and the Northern Batched Hospitals scheme in Manchester, which have a combined capital value of £440 million. These schemes represent a committed equity investment of £112 million, £50 million of which is in the projects at preferred bidder stage. Consort is also bidding Fife Hospital at a capital value of £100 million. Consort Healthcare is a leader in the PPP hospitals market in which it has a proven track record and high levels of client satisfaction. ENDS Enquiries to: Tim Sharp Tel: 020 7216 6884 www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock Exchange CNTEAXLAFDDKEFE
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