Re Contract

Balfour Beatty PLC
05 April 2007


5 April 2007


                     BALFOUR BEATTY REACHES FINANCIAL CLOSE
            FOR £36 MILLION DERBY CITY PFI STREET LIGHTING CONTRACT
            =======================================================

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Connect Roads, its specialist PFI road
and street lighting arm, has reached financial close on the £36 million PFI
street lighting concession for Derby City Council.

The contract is for a 25-year term. Under the contract, Balfour Beatty will take
responsibility for all street lighting and highway signage services. Balfour
Beatty Power Networks, the Group's power and cabling specialist, will carry out
the work.

The project will involve the replacement of 20,100 lighting columns and 3,200
illuminated signs during the five-year capital investment period and also the
on-going maintenance of a total stock of 27,600 columns and 3,200 signs and
bollards.

Commenting on the award today, Ian Tyler, Balfour Beatty Chief Executive, said:

'Balfour Beatty already has a strong permanent presence in Derby and we are
thoroughly familiar with the locality. We look forward to working with Derby
City Council on a programme which will help improve road safety, reduce crime
and enhance the local environment.'

This is Balfour Beatty's third street lighting concession, with existing
projects in Sunderland and South Tyneside already proceeding successfully.

                                      ENDS

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

Notes to Editors
----------------

1.  Connect Roads, a 100%-owned business within Balfour Beatty Capital, the
    Group's asset investment and operations business, has four road concessions.  
    These are the A30/A35 in Devon and Dorset, the A50 in Derbyshire, the M1/A1 
    Link in Yorkshire and the M77 in Scotland.

2.  Connect has existing street lighting contracts in Sunderland (value
    £100 million, commenced 2003) and South Tyneside (value £63 million, 
    commenced 2005).

3.  Balfour Beatty Capital is a UK leader in infrastructure investment and
    operations. It has 23 projects in which it has over £340 million of
    committed equity.

4.  In January 2007, Balfour Beatty's specialist vehicle, Regional and City
    Airports, acquired Exeter International Airport for £60 million.

5.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet 
    individual customer need. Its financial position, with significant net cash 
    and with strong operating cash flows, offers continuing flexibility to add 
    additional capacity and expertise to the business mix and to make 
    appropriate investments in PPP and other long-term growth opportunities.




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