Re Contract

Balfour Beatty PLC
07 January 2008


7 January 2008


   BAA SELECTS BALFOUR BEATTY FOR £350 MILLION HEATHROW MIDFIELD PIER PROJECT

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that it has been selected by BAA to deliver
its Midfield Pier project at Heathrow Airport.

Pre-construction work, comprising design, value management and construction
programme development, is already under way on a project which will complement
the new Heathrow East Terminal and which will be built in three phases. Scheme
design was completed at the end of last year, with construction work commencing
in the spring of 2008. In the period 2008 to 2011, Phases 1 and 2 will be
undertaken, comprising the Northern and Mid Sections. These phases of the
project, which will be worth approximately £350 million, will include a cut and
cover tunnel which links Heathrow East with the Midfield Pier, passenger
transfer travellators and cut and cover tunnels for a Track Transit System.

A Remote Passenger Transfer Stand may also form part of the first two phases of
the project, which are due for completion in 2012, and would be worth
approximately a further £78 million. In Phase 3, which would commence following
the completion of the preceding work, a further Southern Section is due to be
built at a value of approaching £100 million.

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

'Having achieved preferred supplier status for BAA's programme of complex
building works in the coming period, we are delighted to have secured the
planned work on the Midfield Pier project at Heathrow.

'Our performance in delivering the rail systems element of Terminal 5 has been
instrumental in the successful on-schedule handover of Terminal 5 to BAA on
17 September.'

Balfour Beatty has worked closely with BAA over many years on a number of their
key airport developments and, most recently, has been involved in the design,
management and delivery of some £450 million of work at Heathrow Terminal 5. The
handovers of the Piccadilly Line extension, the Heathrow Express extension, the
new Terminal 5 underground system and the inter-terminal track transit system
were all achieved on time. This has provided an excellent platform for the
continuation of the relationship into the next generation of BAA's
infrastructure investments.

                                      ENDS

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




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