Re Contract

Balfour Beatty PLC
18 November 2004


18 November 2004


     BALFOUR BEATTY WINS MAJOR NEW FRAMEWORK CONTRACTS TO A POTENTIAL VALUE
                              OF OVER £150 MILLION
                              ====================

          New UK contracts in education and transport engineering for
            local authorities continue growth in forward order book
            -------------------------------------------------------

Balfour Beatty, the international engineering, construction and services group,
announces today that it has been awarded contracts to a total potential value of
over £150 million by two major customers in the local authorities sector.

Balfour Beatty Construction has been selected by Manchester City Council as one
of two construction partners in its Education Framework 2 initiative, a 3-5 year
partnering framework aimed at delivering a substantial part of the Council's
£160 million 'Building Schools for the Future' programme. The work will involve
the substantial redevelopment of the City of Manchester secondary school stock
and will commence before the end of this year.

Balfour Beatty Civil Engineering has been appointed by Cambridgeshire County
Council as one of two contractors to deliver a wide variety of highways bridges
and transport schemes over the next 10 years. The total programme of works is
estimated at about £150 million with the initial contracts let for five years
with a five-year extension option. Work will commence on site before the end of
the year.

The Cambridgeshire award was based on a joint financial and quality evaluation
involving eight bidding contractors in total.

Commenting today, Balfour Beatty Chief Executive, Mike Welton, said: 'A large
and increasing proportion of Balfour Beatty's work is in long-term partnerships
with customers with whom we collaborate closely in creating superior
infrastructure. We are delighted to have established these strong new
relationships and look forward to delivering the improvements they require.'

                                      ENDS

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


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

1.  The Manchester award reflects Manchester City Council's high rating of
    Balfour Beatty Construction's track record and experience in designing and
    delivering PFI schools programmes in Stoke, Rotherham, Derbyshire and 
    Yorkshire.

2.  Balfour Beatty is a world-class engineering, construction and services 
    group, well positioned in infrastructure markets which offer significant 
    growth potential. Its partnerships with public and private customers 
    generate secure, long-term income. 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/PFI and other long-term growth opportunities.




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