Acquisition

Balfour Beatty PLC
01 May 2008




    BALFOUR BEATTY COMPLETES ACQUISITION OF GMH'S MILITARY PPP ACCOMMODATION
                   BUSINESS IN THE US FOR $350.5 MILLION CASH

Balfour Beatty, the international engineering, construction, investment and
services group, announces the completion of its acquisition of the military PPP
accommodation business from GMH Communities Trust, a US real estate investment
trust, for a cash consideration of $350.5 million.

The acquisition, which was first announced on 12 February, secures a reliable,
long-term profit and cash flow from a high-quality portfolio of PPP concessions
in the US and adds an experienced and successful management team to develop
Balfour Beatty's presence in the growing US PPP market.

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

'The acquisition of GMH's military accommodation business is central to
implementing our US strategy of building a high-quality, domestic US business
similar to our very successful UK model. It adds a major, high-quality PPP
business to our US group in one of our key target market sectors. GMH will be an
excellent springboard into other emerging PPP and support service sectors in the
US market, will immediately enhance earnings(1) and generate significant value
for our shareholders.'

GMH is a leader in its market, having secured rights to 15 concessions at 42
bases, and is responsible for the development, renovation, financing, operation
and management of military accommodation projects for the US Department of the
Army, US Department of the Navy and US Department of the Air Force.

Its concessions are executed in partnership with Balfour Beatty Construction
LLC, acquired by Balfour Beatty plc in March 2007.

The acquisition has been funded from Balfour Beatty's existing cash resources.

The business will operate as Balfour Beatty Communities.

                                      ENDS

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


(1) Statements as to earnings per share enhancement do not constitute a profit
forecast and should not be interpreted to mean that Balfour Beatty's earnings
per share will necessarily exceed or match those of any prior year.




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