Trading Statement

Balfour Beatty PLC
29 June 2006


29 June 2006

                      BALFOUR BEATTY PLC TRADING STATEMENT
                      ====================================

Balfour Beatty plc, the engineering, construction and services group is
providing this update on trading for the half-year ending on 30 June 2006, in
advance of its Interim results announcement on 16 August, 2006.

In the first half of 2006, the Group's trading performance has been good.
Markets have remained positive and our order book has grown to over £8.5
billion. Cash generation and working capital performance have also been strong.

The Group's determination to maintain its established growth momentum in the
future was underlined in the period by the completion of the acquisitions of
Charter, the US construction management and services company, and Edgar Allen,
the UK rail products manufacturer, for a net aggregate consideration of £20
million; and by the launch of a £32 million recommended cash offer for Birse,
the UK regional civil engineering company.

The recent financial close of the Birmingham Hospital PPP concession has
confirmed over £500 million of construction and electrical and mechanical
engineering work and in addition has the potential to generate over £300 million
of long-term service revenues. Balfour Beatty will invest £23 million in this
concession.

There has been good progress across the board in the Building, Building
Management and Services sector with order books well ahead and major new
contracts secured in healthcare, education, commercial building and social
housing.

The Civil and Specialist Engineering and Services sector has also continued to
perform strongly. Major new projects have been won in UK road maintenance, civil
engineering, power engineering and utilities, as well as in Hong Kong, Dubai and
Australia.

In Rail Engineering and Services, performance has, as anticipated, reflected the
absence of last year's one-off contract settlements and of generally lower
levels of activity for Network Rail. Progress is good on the major rail
contracts at Heathrow Terminal 5 and work on the London Underground track
renewal programme continues to accelerate.

In the Investments and Developments sector, both Barking Power and the PPP
concession portfolio have performed well and new concessions for Birmingham
Schools and Birmingham Hospital reached financial close in the period.

In the US, further progress has been made in the continuing process of ensuring
that our interests there share the reliable growth and performance
characteristics of our UK business model.

The Metronet PPP concessions in which we have a 20% stake continue to make
satisfactory progress in most areas, although there have been delays to the
station upgrade programme and some challenging operating issues. We are taking
appropriate steps to ensure that Metronet delivers on its long-term commitments
and provides returns at the expected levels.

We anticipate our businesses will continue to perform well in the second half of
the year and that the Group will make good progress in 2006 as a whole.

                                      ENDS





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




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