Re Contract

Balfour Beatty PLC
29 November 2007


29 November 2007


                 BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR
                £150 MILLION CARLISLE NORTHERN DEVELOPMENT ROUTE
                                   PPP SCHEME

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that its wholly owned subsidiary, Connect
CNDR, has been appointed preferred bidder for the Carlisle Northern Development
Route (CNDR) PPP concession by Cumbria County Council.

The concession contract, which is worth £150 million, will run for 30 years from
financial close, which is anticipated for summer 2008. The design and
construction of the new road will be undertaken by Birse Civils, also a wholly
owned Balfour Beatty subsidiary. Whole life operation and maintenance services
will be provided by Balfour Beatty Infrastructure Services. Balfour Beatty will
invest approximately £5 million of equity in the project.

The concession will comprise the construction of an 8.25km two-way single
carriageway road from the M6 Junction 44 to the A595 south west of Carlisle and
the management, operation and on-going investment in approximately 150km of
other existing roads in Cumbria.

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

'We are extremely pleased to be appointed preferred bidder for this important
piece of infrastructure which will take traffic away from Carlisle town centre
and greatly improve traffic flows around the town and its environs.'

                                      ENDS

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


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

1.  The Connect Roads group of companies is Balfour Beatty Capital's specialist
    vehicle for PPP concessions in the roads and street lighting sector. Its
    portfolio currently consists of seven concessions in which Balfour Beatty 
    has over £60 million of equity commitment.

2.  Connect's other concessions are:

    - The M1-A1 Link in Yorkshire
    - The A30/A35 in Devon and Dorset
    - The A50 in Staffordshire and Derbyshire
    - The M77/Glasgow Southern Orbital Road
    - Sunderland Street Lighting
    - South Tyneside Street Lighting
    - Derby Street Lighting.

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 has new PPP businesses established in the US, Germany and
    Singapore. It was awarded preferred bidder status on the £92 million 
    Institute of Technical Education project in Singapore - its first outside 
    the UK - earlier this week.

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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