Re Contract

Balfour Beatty PLC
03 August 2006


3 August 2006


                  BALFOUR BEATTY WINS ROAD CONTRACTS IN DUBAI
                  ===========================================
                             WORTH OVER £100 MILION
                             ======================

Balfour Beatty, the international engineering, construction and services Group
announces today that, Dutco Balfour Beatty (DBB), its jointly owned construction
business in the United Arab Emirates, has been awarded two major new road
contracts by the Dubai Roads and Transport Authority to a total value of over
£100 million.

The company has won the contract for comprehensive improvements to the Sheikh
Zayed Road through the construction of the Jumeirah Lake Towers Interchange. The
project involves the construction of five elevated viaducts, a three-span bridge
across the existing Dubai Marina, associated service roads and other related
infrastructure. The project which is due for completion in September 2008 will
not only provide access to both Jumeirah Lake Towers residential development and
the Dubai Marina, but will also assist with improving the traffic flow on the
main thoroughfare to Dubai City.

DBB has also been awarded the project for the widening of the Emirates Road from
three lanes to five in each direction over 35 km, including auxiliary lanes and
ramps. The project is due for completion in September 2007. The Emirates Road
extends from the Abu Dhabi border to Sharjah, by-passing the centre of Dubai.

Commenting today, Balfour Beatty's Chief Executive, Ian Tyler, said :
'Balfour Beatty has been working in Dubai for nearly 30 years. Winning these two
projects further strengthens our long-established position as a leader in
Dubai's civil engineering, building and building services markets which continue
to grow rapidly.'

                                      ENDS

Enquiries to:

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


Notes to Editors

1. Balfour Beatty has been operating in Dubai since 1977. Dutco Balfour Beatty,
its civil engineering joint venture, has completed major heavy civil engineering
projects including power stations, roads, bridges, reservoirs, high-rise and
speciality buildings, airport infrastructure projects and port developments.
Notable projects include:

    -    The US$4 billion Jebel Ali Port project for the
         government of Dubai
    -    Civil works at Dubai International Airport, including
         airport access roads and parking
    -    Civil and marine works, and electro-mechanical works
         with the sister company BK Gulf for the Burj Al Arab Hotel

2. Current major projects by Dutco Balfour Beatty include the extension of the
Dubai Creek (£55 million), the construction of the complex Ras Al Khor
Interchange (£58 million) and, in joint venture with CCC, the world's largest
shopping mall, the Burj Mall (£400 million), for Dubai based developer EMAAR
Properties.

3. Balfour Beatty's revenues in Dubai, are likely to exceed £250 million in
2006.

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,
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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange