AGM Statement

Balfour Beatty PLC
10 May 2007


10 May 2007


                               BALFOUR BEATTY PLC

                                 AGM STATEMENT
                                 =============

When he reports to shareholders this afternoon at the Annual General Meeting of
Balfour Beatty plc, the international engineering, construction, services and
investment group, Sir David John KCMG, Chairman of Balfour Beatty, will say:

'As is our customary practice, I would like to update you on trading so far this
year.

'I am pleased to report to shareholders that trading in 2007 to date is in line
with expectations. Our markets remain strong and continue to offer us a range of
good opportunities. Our order book has grown further since the end of last year,
even before taking account of the very substantial order book of Balfour Beatty
Construction (LLC), formerly Centex Construction, the acquisition of which was
completed on 30 March this year.

'In the Building sector, early progress has been good, with order intake and
activity levels particularly strong in the UK building construction businesses
and work proceeding satisfactorily on a range of major projects. The new
facilities management contracts for the Department for Work and Pensions and the
Metropolitan Police were mobilised successfully.

'The acquisition of Centex Construction (now Balfour Beatty Construction LLC)
gives us profitable critical mass in the US and, in conjunction with Heery and
our new US PPP business, brings substantial new business development
opportunities there. In April, Balfour Beatty Construction LLC was awarded the
$525 million military housing contract for the US Navy in the South-East.

'In Engineering, progress has been steady. In early March, Balfour Beatty Power
Networks secured the five-year £550 million Eastern Overhead Line and Cabling
Alliance with National Grid plc and Balfour Beatty Utilities was awarded a major
new contract by Yorkshire Water. Performance in the US continued to improve and
major new contracts were secured in Texas and California.

'In Rail, trading was significantly stronger than in the first half of last
year, with an improved performance in the US augmented by some good settlements
in the UK. Work on the rail system at Terminal 5, the East London Line and for
London Underground progressed satisfactorily. Preferred bidder status has been
achieved this week, in joint venture, for the rail systems for the new Gotthard
base tunnel, with a value to the company likely to approach £200 million. Fuller
details will be announced in due course.

'In Investments, performance was as anticipated, affected by significantly
increased bid costs as we extend Balfour Beatty Capital's business beyond the UK
PPP market in the UK, the US, Germany and Singapore and by the performance of
our 20% interest in Metronet, the current position on which was covered in our
statement to the market on 18 April of this year.

'The acquisition of Exeter International Airport was completed early in the
year. Subsequently, 40% of the equity invested in this asset has been sold to
Galaxy, the international transportation equity investment fund, for a cash
consideration of £12 million.

'Since the year end, we have been appointed preferred bidder for a £152 million
hospital scheme in Fife and have reached financial close on the £36 million
Derby Street Lighting concession.

'We have this morning announced an agreement to sell our 24.5% interest in
Devonport Management Ltd to Babcock International Ltd for a cash consideration
of approximately £86 million, as a result of which we will recognise
approximately a £50 million exceptional profit in our half-year results. The net
impact of the sale will be marginally earnings dilutive.

'As stated in our Annual Report, we are making good progress in pursuing our
strategic priorities through investment and acquisition and continue to add to
our earning power as a result. We expect to make good progress in 2007.'

                                      ENDS

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




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