Re Contract

Balfour Beatty PLC
20 January 2005

20 January 2005



             BALFOUR BEATTY WINS £240 MILLION OF UTILITY CONTRACTS
             ======================================================

Balfour Beatty, the international engineering, construction and services group,
announces today that is has won £240 million of new utility contracting work in
the water and electricity sectors:

-  Balfour Beatty Utilities Ltd (BBUL) has been appointed by Anglian Water to
   play a key role in delivering its AMP 4 capital expenditure programme over an
   initial five-year term in a contract worth up to £30 million per annum. This
   award marks a new customer alliance for Balfour Beatty Utilities.

-  BBUL has also gained a two-year extension, likely to be worth approximately
   £50 million in total, to its existing framework contract for Yorkshire Water.

-  Balfour Beatty Power Networks Ltd (BBPNL) has been awarded the largest single
   overhead line refurbishment contract ever awarded by National Grid Transco
   (NGT). The £40 million contract is for the refurbishment of 100 km of 400 kV
   line in the East Midlands and East Anglia.

Commenting on these awards today, Balfour Beatty Chief Executive, Ian Tyler,
said:

'We are pleased to have secured a new five-year alliance contract with Anglian
Water, to extend our successful relationship with Yorkshire Water and to win
further work from NGT.

'We are confident that Balfour Beatty Utilities will continue to benefit
significantly from increased spending patterns under existing and new long-term
contracts in the water and gas sectors and to play a key role in improving and
extending the National Grid.'

For Anglian Water, BBUL will be responsible for design and construct operations,
asset and mains renewals, service connections and the repair of sewerage
infrastructure. The contract will run from April 2005 to May 2010 with an
optional five-year extension period.

Works for Yorkshire Water include investigation and water mains rehabilitation
across its west supply zone and third party works over the whole supply zone.
Balfour Beatty's successful relationship with Yorkshire Water began in 1994.

The BBPNL contract for NGT covers the complete refurbishment of the double
circuit overhead transmission line between West Burton and Walpole and includes
the replacement of complete insulation sets, conductors and earthwire systems
over a two-year time frame. Work is due to commence on site in March 2005.

                                      ENDS

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


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

1.  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 and other long-term growth 
    opportunities.

2.  Balfour Beatty Utilities provides a complete asset maintenance and
    replacement service for the gas, clean water and waste water 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.

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.





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