Re Contract

Balfour Beatty PLC
06 April 2005


6 April 2005



                    BALFOUR BEATTY WINS £33 MILLION CONTRACT TO MAINTAIN 
                          HIGH-SPEED ROADS IN HONG KONG
                          =============================

                 Gammon awarded major road maintenance contract
                 ----------------------------------------------


Balfour Beatty, the international engineering, construction and services group,
announces today that Gammon, in which Balfour Beatty is a 50% partner with
Jardine Matheson, has been awarded a HK$480 million (£33 million) contract for
the management and maintenance of the high-speed roads in New Territories East
and on Hong Kong Island.

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

'This contract offers Gammon an excellent opportunity to work in partnership
with the Hong Kong Highways Department to deliver value-added highway
maintenance services and draws on the well-established expertise which we have
developed in the UK through our specialist subsidiary, RCS.

'The long-term Public Private Partnership or PPP-based contract will allow
Gammon to deliver improvements in service, drawing on a combination of local
capability and RCS and other Balfour Beatty experience of highway maintenance
and PPP in the UK.'

The eight-year contract covers maintenance of the highways, associated slopes,
structures, street furniture, cleaning and other improvement works.

Gammon is the leading engineering and construction company in Hong Kong and has
been operating in Hong Kong, China and Southeast Asia for over 45 years.

                                      ENDS

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


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

1.  Balfour Beatty, through its subsidiary, RCS, is one of the UK's leading road
    managers and maintainers. It is responsible for some £200 million of annual
    maintenance works for the Highways Agency Areas 2, 3 and 4 and for local
    authorities in North Yorkshire, Hampshire, Worcestershire and Bedfordshire
    amongst others.

2.  Gammon is a strong, broadly-based construction group with an overall Hong
    Kong market share of approximately 10%. Balfour Beatty owns 50%, with 
    Jardine Matheson, Asian market leaders in a number of business fields, 
    owning the other 50%.

3.  Gammon's main business is in civil engineering, foundation engineering and
    major building construction. It also owns a number of smaller businesses 
    which support its main contracting activities. Its principal customers 
    include Hongkong Land, the Swire Group, Kowloon Canton Railway Corporation 
    and the Mass Transit Railway Corporation.

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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