Statement re Metronet

Balfour Beatty PLC
18 April 2007


18 April 2007


                                METRONET UPDATE
                                ===============

Balfour Beatty's 2006 accounts reflect the performance of its investment in
Metronet and of the downstream contracting work carried out to date.

Metronet's finances are under increasing pressure as a result of the high level
of unanticipated costs which have been and continue to be incurred and the
continuing absence of a commercial settlement with LUL in respect of these
costs. As a result, the likelihood of a lengthy extraordinary review, under
which the Arbiter would advise on the attribution of these unanticipated costs,
with its attendant uncertainties, has increased significantly.

The carrying value (£59 million as at December 2006) of Balfour Beatty's
shareholding in Metronet will continue to be under review as the parties seek an
appropriate way forward. Balfour Beatty has invested a further £13 million since
December 2006 and is committed to investing a further £19 million in the future.
Full provision for any anticipated losses in respect of contracting work
performed by Balfour Beatty and its affiliated companies was made in 2006.

                                      ENDS

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




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