Re Contract

Balfour Beatty PLC
26 November 2007


26 November 2007


 GAMMON CAPITAL APPOINTED PREFERRED BIDDER FOR THE NEW £90 MILLION INSTITUTE OF
                  TECHNICAL EDUCATION PPP PROJECT IN SINGAPORE

               First PPP concession for Balfour Beatty outside UK
               --------------------------------------------------

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Gammon Capital, its PPP vehicle in South
East Asia, has been appointed preferred bidder for the new Institute of
Technical Education (ITE) College West in Singapore. The project, which has a
contract period of 27 years and a capital value of approximately £90 million, is
scheduled to be completed in time for its first intake of students in January
2010. Financial Close is anticipated in early 2008. It is Balfour Beatty's first
PPP project outside the UK.

Construction will be undertaken by Gammon Construction, in which, like Gammon
Capital, Balfour Beatty has a 50% interest. Gammon will also be responsible for
long-term facilities management services to include mechanical and electrical
maintenance, AV support, cleaning, landscape management, security, parking,
environment and waste management and catering. Its FM partner will be United
Premas, a subsidiary of United Group Services.

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

'We are delighted to have been selected by ITE to play such a key role in the
next stage of their development as a global leader in technical education. This
is our first PPP project outside the UK and is an important step in our strategy
of creating sustainable PPP businesses in selected geographic markets.'

The new college is the second stage in ITE's plan to consolidate the existing 10
ITE Campuses into three Mega Campuses and follows the opening of ITE College
East in January 2005. Under the 'One ITE System, Three Colleges' education
model, the new ITE College West is envisioned to be 'An ITE College of
Excellence for Service Quality' operating three key schools for Business and
Services, Info-Communications Technology and Engineering.

ITE College West will be a comprehensive college with niche courses in
hospitality, retail and automotive engineering. It seeks to provide an inspiring
learning and interactive environment that promotes the holistic development of
students with relevant skills, knowledge and values for the global economy.  The
College will also have special emphasis on the development of service excellence
skills, knowledge and mindset.

The project involves the design, construction and operation of a distinctive
campus with a student capacity of 7,200 full time, 8,100 part time and
approximately 630 staff. It will comprise training rooms, workshops,
laboratories and lecture theatres. The complex will also include a training
restaurant and kitchen, a student interaction and learning centre, integrated
sports facilities and centres of technology.

                                      ENDS

Enquiries to:

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


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

1.  Gammon Capital was formed in 2005 to pursue PPP projects in the Asia region,
    with an initial focus on Singapore, where Gammon Capital is based.

2.  Gammon Construction is Hong Kong's largest and most successful contractor. 
    It has a substantial existing presence and long-term experience of working 
    in Singapore. It has an annual revenue of approximately £500 million and 
    employs over 2,000 full-time staff. Like Gammon Capital, it is co-owned with
    Jardine Matheson.

3.  Balfour Beatty Capital in the UK has 26 PPP concessions, four at preferred
    bidder stage, representing an equity commitment of some £253 million. It is
    currently bidding a number of schools, healthcare and transportation 
    projects in the UK. It also owns Exeter International Airport, in which it 
    has invested £18 million.

4.  Balfour Beatty Capital Inc, based in Atlanta, Georgia, was formed in 2005 to
    bid PPP projects in the emerging US market. It has been short listed for the
    Oakland Connector project to link Oakland Airport with the Bay Area Rapid
    Transit System in California and for the Tarrant Expressway in Dallas, 
    Texas.

5.  Balfour Beatty Capital GmbH was formed in 2005 in Germany to pursue
    opportunities in the German and wider Western European PPP markets. It is
    bidding for Bremen Hospital in conjunction with Strabag Construction and is
    currently assessing a number of other opportunities.

6.  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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