Acquisition

Balfour Beatty PLC
18 October 2007


18 October 2007



          BALFOUR BEATTY ACQUIRES COVION, THE FACILITIES INFRASTRUCTURE
                       SERVICES BUSINESS, FOR £33 MILLION
                                        
                               K E Y   P O I N T S

-  Covion is a profitable, fast-growing company with an excellent customer base
   including Logica CMG, Anglian Windows, Britvic and Tate & Lyle

-  Strengthens and extends Balfour Beatty's reach in facilities management, a
   core business for the Group

-  Important step in strategy of offering integrated service packages, extending
   white collar skills and increasing private sector presence

-  Complementary to Haden Building Management's existing strengths in public
   sector markets

'This transaction is an important step in increasing our penetration of the
private sector facilities management market and in broadening and deepening our
range of expertise in technology, property and people services. The addition of
Covion's clients and people will provide Haden Building Management, which is
already growing strongly, with a significantly enhanced service offering in the
facilities management marketplace and will establish us as a key player in the
integrated facilities management field.'
                                      Ian Tyler, Chief Executive, Balfour Beatty



          BALFOUR BEATTY ACQUIRES COVION, THE FACILITIES INFRASTRUCTURE
                       SERVICES BUSINESS, FOR £33 MILLION

       Acquisition gives Haden Building Management strong position in the
           fast-growing private sector FM market and a prime position
                    in integrated technical service provision
                    -----------------------------------------

Balfour Beatty, the international engineering, construction and services
company, announces today that it has acquired Covion Ltd, the integrated
facilities infrastructure services business, from its management and private
equity investors for £33 million.

Covion, which provides technology, property, people and facilities management
services in integrated packages to the manufacturing facilities and corporate
business sectors, has been one of the fastest growing companies in the UK in
2005 and 2006. It will become part of Haden Building Management (HBM), Balfour
Beatty's existing facilities management arm, adding a strong private sector
presence and a specialist expertise in a range of white and blue collar
functions to HBM's predominantly public sector portfolio.

Commenting on the acquisition today, Balfour Beatty Chief Executive, Ian Tyler,
said:

'This transaction is an important step in increasing our penetration of the
private sector facilities management market and in broadening and deepening our
range of expertise in technology, property and people services. The addition of
Covion's clients and people will provide Haden Building Management, which is
already growing strongly, with a significantly enhanced service offering in the
facilities management marketplace and will establish us as a key player in the
integrated facilities management field.'

David Steventon, Chairman of Covion, said:

'We are delighted to have found in Balfour Beatty an ideal partner to continue
to expand the range and depth of services that we can provide to the market. The
value of our market integrated approach is being recognised by an increasing
number of blue chip customers.'

Covion was founded in 2000, is based in Theale, near Reading, and has some 600
employees. In 2007, its revenues will exceed £33 million and are forecast to
continue to grow strongly as its customer base expands. To date, the business
has achieved good margins which are expected to continue. Its clients are large,
multi-national organisations and top-tier corporate businesses, including Logica
CMG, Anglian Windows, Britvic and Tate & Lyle.

The consideration has been satisfied by cash.

                                      ENDS

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


Notes to Editors
----------------

1.  Covion's service offering comprises:

    - technology services, including PABX and communications network 
      maintenance, mobile phone management, system installation and business 
      interests

    - property services, including surveying, space planning, lease and estate
      management

    - people services, including payroll, interim management, medical, sports 
      and fire services, people sourcing and induction management

    - and facilities services including areas such as cleaning, security, 
      catering, building and grounds maintenance.

    Covion combines these services in custom-built integrated packages for blue
    chip private clients.

2.  Haden Building Management is a leading asset and facilities management
    business with annual revenues in excess of £300 million. Its customers under
    long-term framework contracts include the Royal Mail, BT and a number of the
    Balfour Beatty Group's PPP hospitals and schools schemes. Other customers
    include the BBC, BAA, Tesco, Sainsbury's, the new Emirates Stadium in north
    London, Intel and St David's Hospital in South Wales.

3.  In 2006, HBM won two major new long-term contracts.

    In September, it was selected by the Department for Work and Pensions to be
    their single service provider in delivering a comprehensive range of office
    support services on a nationwide basis under a seven-year contract worth
    approximately £320 million.

    In December, it was awarded a contract worth in excess of £150 million by 
    the Metropolitan Police Authority (MPA) to provide facilities management 
    services across the Authority's property portfolio in north London.

4.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet 
    individual customer need. Its financial position, with significant net cash
    and with strong operating cash flows, offers continuing flexibility to add 
    additional capacity and expertise to the business mix and to make 
    appropriate investments in PPP and other long-term growth opportunities.




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