Re Contract

Balfour Beatty PLC
15 August 2007


15 August 2007


      $730 MILLION OF NEW ORDERS FOR BALFOUR BEATTY CONSTRUCTION IN THE US

     First contract secured under new $30 billion US Department of Defense
                     Base Realignment and Closure Programme
                     ======================================

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Balfour Beatty Construction LLC (BBC),
its US building construction subsidiary, has been awarded four major contracts,
including its first under the $30 billion Base Realignment and Closure (BRAC)
Programme, to a total value of over $730 million.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'Balfour Beatty Construction has performed in line with our expectations since
acquisition and we are delighted to be adding to our order book with
high-quality work in a number of sectors. It is particularly pleasing to secure
an early success under a major long-term programme which is of such enormous
potential to the business.'

Under the BRAC Programme, the US Army Corps of Engineers has awarded the first
phase of the National Geospatial Intelligence Agency to a joint venture of
Balfour Beatty and Clark Construction. Phase One - the $334 million 'Integrated
Design-Bid-Build' contract - is for construction integration phase services and
for site construction, the central utility plant and certain other supporting
facilities. It is anticipated that the project will ultimately be worth
approximately $1.5 billion, with the balance of the work awarded before the end
of this year.

Under the BRAC Programme, it is anticipated that there will be over 800 projects
at more than 200 bases across the US. Many of the projects involve extensive
modernisation and expansion programmes.

Elsewhere, BBC has been awarded a $140 million contract for military housing at
the major military recruitment and training centre at Fort Jackson, South
Carolina, by the US Army. The contract involves the construction of 615
residential units. This contract award brings the company's total revenues in
military housing to over $2 billion, including five secured projects with a
total value of over $750 million on which work has yet to commence.

In the private sector, it has also been awarded major contracts by Disney
Corporation and Bank of America. For Disney, it will build a $160 million
extension of Animal Kingdom in Orlando, Florida, comprising a new 340-unit,
five-storey resort hotel with a full range of amenities, and convert the
existing Animal Kingdom facility into 110 units. For Bank of America, it will
construct a $100 million, 750,000 square feet office tower, comprising 32
floors, to house 1,200 Bank of America staff and other tenants, together with a
reconfiguration of the adjoining Ritz-Carlton Hotel.

                                      ENDS

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


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

1.  Balfour Beatty completed the acquisition of Balfour Beatty Construction US
    (formerly Centex Construction) from Centex Corporation on 31 March 2007 for
    a gross consideration of £362 million ($126 million net of cash acquired 
    with the company).

2.  Balfour Beatty Construction is a top-tier US building company, well placed 
    in a number of geographical and sector markets. It employs 1,500 staff. It 
    has leading market positions in the Florida, Texas, Washington DC and North 
    Carolina markets and in military housing.

3.  The great majority of BBC's contracts are secured through qualifications
    based tendering, in which final cost is agreed only after design is
    substantially complete and the supply chain in place. Thus, cost and 
    programme risk are substantially reduced and the business margins are highly
    predictable.

4.  Balfour Beatty's annual revenues in the US are now approximately
    $3.5 billion, representing some 23% of Group revenues.

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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