Re Joint Venture

Balfour Beatty PLC
12 April 2002

CONSIGNIA AND BALFOUR BEATTY IN £1bn JOINT VENTURE TALKS
Potential outsourcing partnership unveiled as part of Consignia's renewal plans

Consignia is entering into final negotiations with Balfour Beatty's facilities
management company Haden Building Management to conclude a £1 billion
partnership for its facilities services business Romec which is responsible for
day-to-day maintenance of the company's 3,000 buildings.

The outsourcing of Romec and other parts of Consignia's support services is part
of a three year renewal plan to return Consignia to profitability.  Outsourcing
will improve support services which are not core to the postal network and save
£60 million a year.

Malcolm Kitchener, Consignia's Group Managing Director Business Services, said:
'Outsourcing will help to reduce costs, increase efficiency and give our people
fresh opportunities within new companies.'

The final negotiations with Balfour Beatty are based on a joint venture with
Consignia retaining a 51% majority share of the new business.  Conclusion of
successful negotiations would mean the new company will be awarded a seven-year
contract, worth £1 billion, to provide a full range of services - from office
cleaning to installing and maintaining sophisticated high-security cameras and
other devices.

Under the terms of the contract, the 5,000 Romec employees will transfer to the
new company on existing terms and conditions under TUPE (Transfer of Undertaking
Protection of Employment) legislation. Consignia has agreed with Balfour Beatty
that existing employees can remain within Consignia's pension plans.

Mr Kitchener said:  'This new joint venture will enable Romec to grow faster and
develop further, providing our employees with the best possible security,
prospects and opportunities in the future.

'Romec already operates outside of Consignia with significant external contracts
won with major retailers, banks and public sector organisations. By joining
forces with Balfour Beatty, the joint venture will be in a stronger position to
bid for even larger and more diverse contracts.'

Mike Welton, Chief Executive, Balfour Beatty plc, said: 'We are delighted to
have been selected for this strategically important partnership.  We are looking
forward to working with Consignia to achieve their important goals and help to
develop Romec's business outside Consignia.'

Note to editors:

Romec is part of Consignia's support services.  It has some 5,000 employees,
skilled engineers, cleaners and other specialists - and is responsible for the
maintenance and day-to-day running of Consignia's buildings and office
equipment.

Balfour Beatty is an international engineering, construction and services group
which specialises in the creation and care of essential assets.  It provides a
range of skills to customers for whom infrastructure quality, efficiency and
reliability are critical.  The group has annual sales of over £3 billion and
more than 26,000 employees.

Haden Building Management is a leading provider of integrated Facilities
Management services to both the public and private sectors across the UK through
a national network which employs in excess of 5,000 people.  Haden Building
Management is involved in major Facilities Management outsourcing activities
including a contract with the Department of Work and Pensions (formerly known as
the Benefits Agency) for the provision of business and administration services
to over 200 properties across southern England, employing in excess of 1,400
people.  It is also a founding partner in Monteray, the joint venture company
responsible for British Telecom's national facilities management contract,
covering some 8,500 buildings throughout the UK.

Contact details:

Consignia Newsroom: Melanie Corfield (Tel: [phone])

Balfour Beatty Corporate Communications: Tim Sharp (Tel: [phone])
Website: www.balfourbeatty.com

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