Re Contract

Balfour Beatty PLC
10 May 2005


10 May 2005


BALFOUR BEATTY WINS £300 MILLION CLEAN WATER, SEWERAGE AND ELECTRICITY CONTRACT
                              FOR UNITED UTILITIES
                              ====================

Balfour Beatty, the international engineering, construction and services group,
announces today that it has been awarded a new five-year contract by United
Utilities for clean water, wastewater and electricity works under the
organisation's new AX4 Capital Investment Programme. United Utilities was
created in November 1995 from the merger of North West Water and Norweb. Its
principal activities are managing and operating the regulated electricity
distribution, water and wastewater networks in north-west England.

The highly-innovative, five-year contract, which will run from July 2005, is
likely to be worth up to £300 million over its initial five-year term and has an
option for a further five-year extension.

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

'We are very pleased to have been awarded this unique new contract which extends
the excellent relationship we have built with United Utilities over the years.
By combining our expertise in power, gas and water engineering, we are able to
offer United Utilities a range of skills and experience which exactly matches
the requirements of their new investment programmes.'

United Utilities' Steven Beaumont, who has overall responsibility for the
company's procurement and investment delivery process, said:

'I am delighted to be working with partners that have such a breadth of
expertise and I am confident that our new relationships and collaborative way of
working wi11 help us achieve the ambitious goals we have set ourselves.'

Under the contract, Balfour Beatty will undertake clean water and wastewater
works including design and construction of network infrastructure, renewals and
rehabilitation and planned and reactive network maintenance; it will also be
responsible for electrical works including cable laying and jointing of above
and below ground infrastructure.

Under other current contracts for United Utilities, Balfour Beatty is involved
in a range of activities including mechanical and electrical pumping station
maintenance and minor capital projects.

                                      ENDS

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


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

1.  Balfour Beatty Utilities provides a complete asset maintenance and
    replacement service for the gas, clean water and wastewater sectors, 
    including investing in design, construction and commissioning. The company 
    was formed in late 2002 by the integration of John Kennedy and Kentons, 
    established utilities contractors acquired by Balfour Beatty in 2001 and 
    2002 respectively.

2.  Balfour Beatty Utilities has been very successful in securing long-term
    service contracts following last year's gas and water sector regulatory 
    reviews. Over the last three months, it has been awarded:

    -  the £380 million alliance contract to replace gas mains in the Greater
       Manchester area for Transco, in conjunction with Balfour Beatty
       Management

    -  the £150 million contract to deliver Anglian Water's AMP 4 capital 
       expenditure programme over the next five years

    -  the £60 million, five-year contract to deliver Severn Trent Water's AMP 4
       programme.

    Amongst its recent successes is the £40 million contract for a 100 km
    transmission line in East Anglia and the East Midlands, the largest single
    overhead line refurbishment contract ever awarded in the UK.

3.  Balfour Beatty Power Networks is the UK's leading specialist in designing,
    constructing and refurbishing power transmission and distribution networks 
    for the power supply industry and industrial customers.

4.  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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