Re Contract

Balfour Beatty PLC
09 March 2005



9th March 2005

For immediate release



            BALFOUR BEATTY AWARDED ROAD, RAIL AND SOCIAL HOUSING 
                      CONTRACTS TO THE VALUE OF £360 MILLION

                  £241m M1 Widening Programme To Begin Shortly


Balfour Beatty, the international, engineering, construction and services Group
announces today that it has been awarded contracts to a total value of over £360
million in the road, rail and social housing sectors. The group is to widen the
M1 from Junction 6A to Junction 10 for the Highways Agency, upgrade social
housing in Newcastle and extend the railway network in Sweden.


Commenting on these contracts today Balfour Beatty Chief Executive, Ian Tyler
said, 'These contracts demonstrate the strength of Balfour Beatty's presence in
infrastructure markets. We are working closely with the Highways Agency on
several aspects of its forward programme, including construction, widening and
maintenance. We are a top-three player in the social housing market for which
the government has pledged some £47 billion over the next five years. We are
also a leading supplier to a number of European rail network owners as they
upgrade and extend their assets'.


M1 WIDENING

Under a £241 million early contractor involvement contract, Balfour Beatty Civil
Engineering has been selected, in joint venture with Skanska, to widen the M1
motorway between junction 6A at the M25 and Junction 10, at Luton. Preparation
and design work will commence shortly with construction scheduled to begin
towards the end of the year.


The M1 through Hertfordshire carries an average of 160,000 vehicles per day with
long delays at peak times. The widening will improve safety, reduce congestion
and deliver greater journey time reliability.


The work will be carried out on both carriageways to bring it up to a full
standard four-lane motorway with continuous hard shoulders. There will be new
interchanges at Junctions 8 and 9 and distribution roads will be constructed to
improve traffic flows through Junction 8.


SOCIAL HOUSING IN NEWCASTLE

Mansell, acquired by Balfour Beatty at the end of 2003 and a leading player in
the social housing market, has been awarded a contract with an estimated value
of £70 million to refurbish 34 multi-storey housing blocks, involving
approaching 3000 homes, and 10,000 traditional houses by Your Homes Newcastle,
which is responsible for the £600 million six-year Decent Homes Programme in
Newcastle-Upon-Tyne.


Mansell Partnership Housing, the company's specialist social housing arm, was
the national 'Partnering Contractor of the Year' at the 2004 Housing Excellence
Awards. Work on the Newcastle Scheme will begin in the spring.


SWEDISH RAIL

Balfour Beatty Rail has been awarded two contracts in Sweden, in joint venture,
with a total value of approximately £50 million. The contracts are for the
construction of about 110 kilometres of track between Nyland and Husum in the
northern part of Sweden and the electrification of the 120 kilometre railway
line between Kristianstad and Karlskrona along the Blekinge coastline in
southern Sweden.


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

Notes to Editors

1. Balfour Beatty has carried out a range of major widening projects in recent
   years, including:

   M25 Junctions 12-15                £148 million
   M25 Junctions 8-10                 £93 million
   M20 Junctions 5-6                  £70 million
   M6 Junctions 30-32                 £37 million
   M25 Junctions 10-13                £30 million


2. Balfour Beatty is the UK's leading road management maintenance company with
   responsibility for Highways Agency Areas 2, 3 and 4, together stretching 
   from the West Country to the Kent coast, and for a number of local 
   authorities including North Yorkshire and Hampshire.


3. Balfour Beatty has four Early Contractor Involvement schemes for the Highways
   Agency, being:


   A303 Stonehenge                    £190 million
   A3 Hindhead                        £130 million
   A46 Newark                         £110 million
   A1 Weatherby                       £40 million


4. Balfour Beatty has a portfolio of four Design, Build, Finance and Operate
   road schemes under the UK government's PFI programme. These are the M1/A1 
   Link in Yorkshire, the A30/A35 in Devon and Dorset, the A50 in Derbyshire and 
   the M77 in Glasgow.


5. Mansell Partnership Housing is the group's specialist social housing arm with
   annual sales of approximately £150 million. The government has pledged £47
   billion to upgrading affordable housing in the period to 2010.


6. Balfour Beatty is the world's largest fixed rail infrastructure contractor
   with a substantial presence in a number of continental European markets
   including Germany, Italy, Portugal, Spain, Sweden and Austria.


7. 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, sustainable 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 and other long-term growth opportunities.




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