Re Contract

Balfour Beatty PLC
01 March 2007


1 March 2007



 BALFOUR BEATTY SIGNS CONTRACT FOR UP TO £550 MILLION EASTERN OVERHEAD LINE 
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                 AND CABLE ALLIANCE WITH NATIONAL GRID PLC
                 =========================================

Balfour Beatty, the international engineering, construction and services group,
announces today that it has signed a contract with National Grid for a new
five-year alliance, likely to be worth approximately £550 million, to upgrade
and develop the electricity transmission network in the eastern half of England.
There is an option to extend the alliance for a further five years.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'We are delighted to have signed this innovative contract with National Grid as
their alliance partner and to be given the opportunity to utilise Balfour
Beatty's design, planning, project management, engineering and construction
skills, in combination. Our ability to deliver a multi-disciplinary, integrated
service is an increasingly important factor in driving our growth and in
enhancing our relationships with blue-chip infrastructure customers.'

The alliance contract, which is part of one of the largest procurement exercises
undertaken by National Grid, will support their increased investment in the
electricity transmission network and contribute to long-term security of supply.
The works are required to connect new infrastructure such as wind farms and new
generation plant to the Grid. They will also cover the enhancement and
replacement of existing assets.

The contract, which will come into force in March 2007, is one of two overhead
line and four sub-station alliance contracts due to be signed by National Grid
in the coming weeks.

Balfour Beatty is the leading UK supplier of power transmission and distribution
networks to the international power supply industry. It is also a partner to
National Grid in its 30-year gas mains network replacement programme for the
North West of England, under an eight year alliance contract worth approaching
£400 million.

                                      ENDS

Enquiries to:-
-------------

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



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

1. The contract will be delivered using the skills and resources of Balfour
Beatty Power Networks, the leading specialist in the design and construction of
power transmissions and distribution networks, and Balfour Beatty Management,
the Group's professional and technical services company which specialises in
programme and project management and technical management consulting.

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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