Re Contract

Balfour Beatty PLC
07 December 2006



7 December 2006

                  BALFOUR BEATTY AWARDED FACILITIES MANAGEMENT
                 =============================================
                   CONTRACT BY METROPOLITAN POLICE AUTHORITY
                  ==========================================
                        WORTH IN EXCESS OF £150 MILLION
                        ===============================

Balfour Beatty, the international engineering, construction and services group,
announces today that its specialist facilities management arm, Haden Building
Management (HBML) has been awarded a contract worth in excess of £150 million by
the Metropolitan Police Authority (MPA) to provide facilities management
services across the Authority's property portfolio in North London.

The contract, which will run for an initial seven-year period, with an option to
extend for a further three years, provides a full facilities management service
covering over 500 properties, including some major landmark buildings such as
the Peel centre in Hendon and other high-profile Metropolitan Police sites.

Ian Tyler, Chief Executive of Balfour Beatty, commenting on the award said;

'This contract confirms and extends Haden's position as a leading provider of    
facilities management services in the UK. It also further underscores our 
growing reputation for service delivery, innovation and continuous improvement. 
This contract adds to Haden's growing portfolio of long-term sustainable 
customer relationships. We look forward to a long and successful relationship 
with the Metropolitan Police and to providing first-class support to their 
front-line policing needs.'

Alan Croney, Director of Property Services, the Metropolitan Police Service
said;

'The signing of this contract represents a significant step towards realising
our vision for facilities management which is to move from a traditional
management intensive approach to a more innovative, information and performance
led culture. The nature and scope of relationship we are establishing with Haden
is critical to supporting operational policing and the delivery of our wider 
asset management led Estate Strategy.'

HBML is in a period of strong growth with approaching £650 million of work added
in 2006 to its order book which now stands at well in excess of £1 billion. In
September HBML was awarded a £320 million seven-year contract to become the
single service provider of a range of facilities management services to the
Department of Work and Pensions. Earlier in the year, its contract with BT,
Monteray, was extended by a further three years. It is also a 49% partner in
Romec, which provides support services to the Royal Mail's nationwide estate.

The contract for the Metropolitan Police supports that organisation's Estate
Strategy and it will significantly improve the prioritisation of facilities
management services to meet changing police priorities and new asset plans. The
contract involves the delivery of building engineering and fabric maintenance
services; waste management; security; ground maintenance, cleaning, laundry and
pest control; and the provision of reception, porter and warden services.

Haden Building Management recently appointed Kevin Craven as its new Managing
Director. Previously Managing Director of the Specialist Markets Division of
Aramark, he has the ideal profile and experience to lead the business forward
into its new phase of development.

                                      ENDS

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


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

 1. Haden Building Management is a leading asset and facilities management
    business with current annual revenues in excess of £250 million and forecast
    revenues for next year in excess of £300 million Its customers under
    long-term framework contracts include the Royal Mail, BT and a number of the
    Balfour Beatty Group's PPP hospitals and schools schemes. Other customers
    include the BBC, BAA, Tesco, Sainsbury's and Land Securities and new
    business for this year, includes contracts for the new Emirates Stadium in
    North London, Intel and St. David's Hospital in South Wales.

 2. Balfour Beatty is a world class engineering, construction and services group
    which works in partnership with sophisticated customers who require the
    highest levels of quality, safety and technical expertise and for whom
    infrastructure, efficiency and reliability are critical.

 3. The contract is one of two awarded by the MPA for its entire estate and 
    forms a new Facilities Management Model for the MPA that is focussed on fact 
    based management and real time performance information. Two seven year 
    contracts valued at over £300 million have been awarded on a geographic 
    basis with Interserve being awarded a contract for the southern half of 
    Metropolitan Police Estate; and Haden Building Management Ltd being awarded 
    a contract for the northern half of the Metropolitan Police Estate.

 4. Overall responsibility for the Metropolitan Police estate is vested in the
    MPA, the statutory organisation responsible for ensuring an efficient and
    effective police service for London.

 5. Day-to-day management of the police estate is delegated by the MPA to the
    Metropolitan Police Service's Property Services Department. The estate
    comprises over 600 operational buildings, used by 44,000 police officers and
    staff, and is valued at in excess of £1.7 billion.






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