Acquisition of Integral Technologies Inc

Balfour Beatty PLC
3 July 2000

BALFOUR BEATTY BUYS INTEGRAL TECHNOLOGIES INC OF THE US FOR UP TO $50 MILLION
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Balfour Beatty, the international engineering, construction and services
group, announces today that it has agreed to acquire Integral Technologies Inc
('Integral'), a leading US developer of digital imaging solutions and products
for the security and surveillance industry.  Integral will become part of
Andover Controls, Balfour Beatty's US-based automated building management
controls business, and will significantly broaden Andover's capability in the
fast-growing security sector of the US controls market.

Integral, which is based in Indianapolis, Indiana, had 1999 revenues of $15
million, with operating income before interest and taxes of $3.4 million.  The
business has grown at a rate of 30% compound over the last three years.

$30 million will be paid in cash upon completion of the acquisition, with a
further $20 million payable on an earnout basis against the achievement of
agreed financial targets.  The value of net assets being acquired is
approximately $7 million.

Commenting on the transaction, Balfour Beatty Chief Executive, Mike Welton,
said today:

'The acquisition of Integral further develops the range of services which we
are able to offer the international building, building management and services
market.  Andover Controls' leading position in the automated building
management market will be significantly enhanced as a result.'

Integral provides products and technology, based on digital imaging and CCTV,
which complement Andover's existing range of access control products and will
help increase its share of the fast-growing technology driven security
controls market where it will now offer customers a broad-based, integrated
product and service mix.  Andover Controls is already a leader in the HVAC
segment of the building controls market.


Enquiries to:-

Tim Sharp
Balfour Beatty plc
Tel: [phone]
www.balfourbeatty.com