Re Contract

Balfour Beatty PLC
08 May 2008


8 May 2008


  BALFOUR BEATTY CONSORTIUM APPOINTED PROVISIONAL PREFERRED BIDDER FOR 
                                M25 PPP CONTRACT

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Connect Plus, a consortium comprising
Balfour Beatty (40%), Skanska (40%), Atkins (10%) and Egis Projects SA (10%),
has been appointed provisional preferred bidder for the PPP contract to provide
additional capacity and maintain the M25. The award of the contract is expected
later this year.

The programme will focus on adding capacity to 63 miles of the M25 and will help
deliver substantial improvements to one of the UK's busiest and most important
roads.

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

'We are delighted that Connect Plus has been appointed preferred bidder for this
important development project for England's motorway network. Our team has all
the experience and technical skills to deliver the work on time, on budget and
to specification and we look forward to successfully completing the next stage
of the tender.'

                                      ENDS

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


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

1.  Balfour Beatty is a UK leader in road building and widening schemes and a
    leading road manager and maintainer.

    Balfour Beatty was responsible for the construction of several sectors of 
    the original M25 and completed the widening of junctions 12-15 adjacent to 
    Heathrow Airport on time and on budget in December 2005.

    Balfour Beatty has significant investment interests in four PFI road 
    schemes. These are the M1/A1 Link in Yorkshire, the A30/A35 in Devon and 
    Dorset, the A50 in Derbyshire and the M77/GSO in Scotland. It is also 
    preferred bidder for the Carlisle Northern Distributor Road project.

    It is also a leading provider of highway maintenance and asset management. 
    It is responsible for the Highways Agency Areas 2, 3 and 4 and for local 
    authority roads in North Yorkshire, Essex, the North West of Scotland, Royal
    Windsor & Maidenhead, Wokingham and Westminster.

2.  Balfour Beatty has a substantial existing investment portfolio, largely
    through the UK PPP/PFI programme. This portfolio consists of:-

    -  nine major hospitals
    -  seven major schools schemes in the UK and a technical education centre in
       Singapore
    -  five road and three street lighting projects
    -  the London Underground power system
    -  a waste water scheme
    -  a coastal defence pathfinder PPP
    -  Barking Power Station (non-PPP)
    -  Exeter International Airport (non-PPP)
    -  Blackpool Airport (non-PPP).

3.  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.





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