Re Contract

Balfour Beatty PLC
22 August 2005


22 August 2005



             MAJOR NEW CONTRACT WINS TO THE VALUE OF HK$2.6 BILLION
                            FOR GAMMON IN HONG KONG
                            =======================

Balfour Beatty, the international engineering, construction and services group,
announces today that Gammon Construction, the Hong Kong-based construction group
in which it has a 50% interest, has been awarded three new contracts to a total
value of HK$2.64 billion (£185 million).

The largest contract, with a value of £140 million, has been awarded by the
Kowloon-Canton Railway Corporation for part of the Kowloon Southern Link,
comprising West Kowloon Station and the construction of cut and cover and bored
tunnels from West Kowloon Station via Jordon Road to East Tsim Sha Tsui Station.
Gammon has also secured new contracts at the Venetian Hotel and Casino complex
in Macau, to build the West Podium Superstructure and to design and install the
MVAC (air conditioning) and electrical systems for the new hotel.

Commenting today on the award of these contracts, Balfour Beatty Chief
Executive, Ian Tyler, said:

'In securing these new contracts, which build on existing relationships, Gammon
has once again demonstrated its pre-eminent position in the Hong Kong and
surrounding civil engineering and building markets. I am confident that we will
see Gammon making further good progress in the coming years.'

The Kowloon Southern Link is a design and build contract and comprises the new
380 metre by 26 metre West Kowloon Station, a 100 metre long section of concrete
box tunnel and twin eight metre diameter bored tunnels, both more than one
kilometre in length. It will be carried out in joint venture with completion
planned for 2009.

In Macau, the main contract to build the Venetian Hotel, secured by Gammon in
March this year and worth £175 million, is already under way. Gammon is now
contracted for the construction of the five-level Podium, worth £29 million,
which will contain the casino itself and retail, leisure and entertainment
areas. Gammon is also to design and install the MVAC and electrical
installations for the first 1,500 guestrooms in the hotel in a contract worth
£16 million. Both will be carried out in joint venture with local contractors.

The Venetian Macao Hotel will be a 32-storey tower that will accommodate 3,000
hotel suites scheduled to open in 2007.

                                      ENDS

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


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

1.  Gammon is a strong, broadly-based construction group with an overall Hong
    Kong market share of approximately 10%. Balfour Beatty owns 50%, with 
    Jardine Matheson, Asian market leaders in a number of business fields, 
    owning the other 50%.

2.  Gammon's main business is in civil engineering, foundation engineering and
    major building construction. It also owns a number of businesses which 
    support its main contracting activities, including the leading electrical 
    contracting business previously 100%-owned by Balfour Beatty. Its principal
    customers include Hongkong Land, the Swire Group, Kowloon Canton Railway 
    Corporation and the Mass Transit Railway Corporation.

3.  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.




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