Re Contract

Balfour Beatty PLC
07 March 2007


7 March 2007


                    CENTEX CONSTRUCTION AWARDED $500 MILLION
            MILITARY HOUSING CONTRACT FOR US DEPARTMENT OF THE NAVY
            =======================================================

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Centex Construction, the leading US
builder which it agreed to acquire on 1 February 2007, has been awarded a $525
million contract for the US Navy South-East privatised housing project.

The contract, won with its long-term partners, GMH, a leading US concession
company in the field of privatised military and student housing projects, is for
accommodation at 11 Navy bases in five states and involves some 2,100 individual
housing units, community centres and additional amenity features.

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

'This latest addition to Centex's extensive military housing order book further
consolidates their leading position in this market and demonstrates the
confidence that the US market has in Centex under Balfour Beatty's ownership.

'Centex Construction is a high-quality building company which will give us
critical mass in the US in a core Balfour Beatty business and brings substantial
new business development opportunities.'

This is one of the largest military housing schemes let to date and is Centex's
eleventh such scheme. Construction work will commence in November 2007 and is
due for completion by December 2012. Work will be undertaken at naval bases in
South Carolina, Georgia, Florida, Massachusetts and Texas.

The award takes Centex's military housing order book to over $1.2 billion.

Centex Construction (CC) is a profitable, top tier US building company with
leading positions in the Florida, Texas, Washington DC and North Carolina
markets. CC is also a leading player in the nationwide military housing market.
It has approximately 1,500 employees. The CC management team to be acquired with
the business has a proven track record of profitable growth. Following the
completion of the acquisition, which is expected by the end of March, the
business will become Balfour Beatty Construction Inc.

Balfour Beatty is already a US leader in selected design, project and programme
management markets through Heery International and has established a presence in
the Group's US private finance market through Balfour Beatty Capital. The
acquisition, which is expected to be completed by the end of March, offers
Balfour Beatty additional potential to grow as well as a strong, well
positioned, well managed business.

                                      ENDS

Enquiries to:

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

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

1.  Once the acquisition of Centex Construction is completed, Balfour Beatty's
    annual revenues in the US will amount to approximately $3.5 billion, 80% of
    which will be in the building sector. US sales will represent approximately 
    23% of proforma Group revenues.

2.  CC's business is in the construction management and delivery of
    institutional and commercial buildings, particularly in the education,
    healthcare, correctional, government, transportation, leisure and office 
    sectors. Amongst its major customers are Federal Government, Disney
    Corporation, Boston Properties, Marriott, Bank of America and a range of 
    education authorities and healthcare organisations.

3.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet 
    individual customer need. 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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