Re Contract

Balfour Beatty PLC
05 March 2008


5 March 2008


       OVER $1.2 BILLION OF MAJOR NEW ORDERS FOR BALFOUR BEATTY IN THE US

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that it has been awarded over $1.2 billion of
major new project work in the US.

In a joint venture with Clark Construction, Balfour Beatty Construction US has
been awarded a $640 million contract to design and build additions and
renovations at the Walter Reed National Military Medical Centre at the Naval
Base in Bethesda, Maryland. The addition and renovated space, totalling nearly
1,000,000 square feet, includes surgery, critical care, musculoskeletal,
neurosciences, cardiovascular, cancer treatment, children's health, emergency
services, medical office building, utilities and parking.

Balfour Beatty Construction US has also been awarded a $196 million design and
build contract to construct new training facilities for the US Army Corps of
Engineers at Fort Lee, Virginia. The facilities include classrooms, workshops,
laboratories and administration offices within five buildings, totalling nearly
800,000 square feet. The project will be completed in 27 months. The company is
already working on the $110 million Logistics University contract at Fort Lee.

In Orlando, Florida, Balfour Beatty Construction US has been awarded a
preliminary contract for a major expansion of the Peabody Hotel, the
construction value of which is approximately $250 million. The project, which
will provide in excess of 1.3 million square feet, includes a 35-floor hotel
tower accommodating 750 luxurious guest rooms and suites, a convention centre
and the renovation of the existing hotel. The project is to be carried out over
the next 33 months.

To add to its $120 million Freeport Water Intake Facility contract, awarded in
2006, and the $93 million Folsom South Canal Connection contract, awarded in
2007, and reflecting its strong presence in the provision of water treatment and
water handling facilities in California, Balfour Beatty Infrastructure Inc has
been awarded a $207 million contract to construct the Vineyard Surface Water
Treatment Plant by Sacramento County Water Agency. This 45-month project will
create a facility which will provide up to 100 million gallons per day of
capacity. Also included is a two-storey administration and operations centre
covering 35,500 square feet.

Commenting on these awards, Ian Tyler, Balfour Beatty Chief Executive, said:

'These four new projects, which will create new infrastructure for federal,
municipal and private commercial customers, demonstrate the continuing strength
of our US contracting businesses and the markets which they serve. These
businesses have a very substantial pipeline of opportunities and I look forward
to being able to announce further significant awards as the year progresses.'

                                      ENDS

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

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

1.  Balfour Beatty Construction US was acquired as Centex Construction in March
    2007.

2.  The company is a leading building and building management group in Texas,
    Florida, North Carolina and the Washington DC region and is also a major
    participant in the military housing market across the US.

3.  Since it became part of the Group, Balfour Beatty Construction's performance
    has exceeded expectations. It has a record order book and is a long-term 
    partner to GMH, the military accommodation specialist, which Balfour Beatty 
    agreed to acquire in February of this year.

4.  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. Balfour Beatty's 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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