Re Joint Venture

Balfour Beatty PLC
30 September 2002

                      BALFOUR BEATTY ACQUIRES 49% OF ROMEC



      Seven-Year, £1.3 Billion Contract for Total Facilities Service Provision


Balfour Beatty plc, the international engineering, construction and services
group, announces today that its wholly-owned subsidiary, Haden Building
Management (HBM), has acquired, for cash, a 49% interest in Romec, the company
responsible for the maintenance and management of Consignia's nationwide estate
of over 3,000 buildings.  The total consideration for the acquisition is £7
million.  Consignia will retain a 51% shareholding.



The announcement of Balfour Beatty's selection as preferred bidder for this
transaction was made on 12 April 2002.



Romec will provide a full range of facilities management and maintenance
services to Consignia, from the installation and maintenance of sophisticated
security systems to office cleaning, under an exclusive contract worth
approximately £1.3 billion over the next seven years.  The new arrangements,
which are expected to offer significant savings to Consignia, come into
immediate effect.



Commenting on the acquisition today, Balfour Beatty Chief Executive, Mike
Welton, said:  'This new partnership makes Haden Building Management a leader in
UK facilities management with annual revenues approaching £300 million and an
order book approaching £1 billion.  We very much look forward to delivering
Consignia's requirements through this strategically important partnership and
welcoming Romec employees into the joint venture.  In addition to this contract,
Romec and Haden Building Management have excellent further opportunities for
future growth.'



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.  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 existing external contracts
with major retailers, banks and public sector organisations, including Marks and
Spencer, Dixons Group, W H Smith, HSBC and IBM.  Romec will now be in a position
to bid for significantly larger and more complex projects.



From the Consignia contract, Haden will generate turnover of approximately £90
million per annum.  Haden will receive fees for services provided and its 49%
share of the profits of the business.  The contract will come up for re-tender
in 2009.  Options are in place under which a sale of Consignia's interest in
Romec to HBM can occur.  Any exercise of the options would be expected following
the re-tender.



HBM has existing sales of approaching £200 million per annum from a wide range
of building management contracts with clients including Shell, BT, Tesco,
Sainsbury's, Barclays, the Royal Bank of Scotland, the NHS and the MoD.



Some 5,000 staff, whose employment and pension rights are protected, will
transfer from Consignia to Romec as a result of the transaction.





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


Notes to Editors





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



2.         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.



3.         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 Works 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.


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