Re Contract

Balfour Beatty PLC
25 July 2005


25 July 2005


     BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR £160 MILLION DESIGN AND
          CONSTRUCTION CONTRACT FOR GLASGOW PFI ACADS HOSPITAL SCHEME
          ===========================================================

Balfour Beatty, the international engineering, construction and services group,
announces today that its construction subsidiary, Balfour Beatty Construction
Ltd, has, through the appointed PFI concession company, Canmore, been appointed
preferred bidder for the new Ambulatory Care and Diagnostic Centres at Stobhill
Hospital and adjacent to the Victoria Infirmary in Glasgow, likely to be worth
approximately £160 million.

The contract involves two purpose-built developments, one in north and one in
south Glasgow, to provide out patient day care, minor injury units and day
surgical facilities. These facilities form the first stage of the Board's Acute
Strategy Review implementation programme and will contribute to the better
utilisation of in-patient facilities within the city. Each site will offer a
fully comprehensive range of care, including cardiology and endoscopy services.

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

'We are delighted to be working with Canmore and the NHS Greater Glasgow to
bring significantly enhanced acute hospital care across the City of Glasgow.
Balfour Beatty brings a wealth of experience in healthcare projects to this
task, including six major PFI hospitals as the concessionaire and many more
where we have successfully delivered specialist contracting services.'

The development at Victoria Hospital on the south side of the City will comprise
a crescent-shaped, three-storey building incorporating three distinct zones,
addressing out patients, day treatment and elderly ward areas, imaging,
endoscopy and day surgery.

The Stobhill Hospital development on the north side of the City will comprise a
T-shaped, four-storey complex with distinct areas for imaging and operating
suites, consulting suites and clinics and a central linking arcade.

Construction work is scheduled to commence in the summer of 2006 with completion
in 2008.

                                      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,
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.

2. Balfour Beatty Construction Ltd was responsible, as main contractors, for the
construction of the new Edinburgh Royal Infirmary (completed 2002), North Durham
Hospital (completed 2001), Blackburn Hospital (due for completion 2006) and
University College London Hospital (the first phase of which was handed over
earlier this year). It is the lead contractor for Balfour Beatty teams who are
preferred bidder for major new hospital schemes in Birmingham and Pinderfields
in Yorkshire.

3. Balfour Beatty now has 22 PPP concessions, including four at preferred bidder
stage, involving a total committed equity of £244 million. These are six
hospitals, five schools schemes, four road schemes, two concessions under the
London Underground PPP and a third for the associated power system, a wastewater
scheme and two street lighting schemes.




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