PFI Equity Transactions

Balfour Beatty PLC
10 January 2006


10 January 2006



                BALFOUR BEATTY COMPLETES PFI EQUITY TRANSACTIONS
                FOR EDINBURGH ROYAL INFIRMARY AND CONNECT ROADS
                ===============================================

   Two deals demonstrate continued confidence in the quality and value of PFI
              assets and ability to secure superior market returns
              ----------------------------------------------------

Balfour Beatty, the international engineering, construction and services group,
announces today that it has completed two separate transactions in the PFI
equity market. Balfour Beatty Capital Projects, the specialist PFI/PPP arm of
the Group, has increased its shareholding in Consort Healthcare's Edinburgh
Royal Infirmary PFI concession from 42.5% to 73.9%. It has also sold a 15%
interest in three of the roads in the Connect Roads portfolio, previously 100%
owned. These transactions, which have a net cash cost of £18.1 million, take the
total commitment of Balfour Beatty's equity investment in PFI projects to £284
million.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'These transactions demonstrate our continued confidence in the value and
quality of our PFI assets and further illustrate our commitment to developing
and maintaining an active PFI investment portfolio. We expect further such
opportunities to arise in the future.

'Our development capability, operating expertise and proven capability in
financial structuring gives us the confidence to properly value PFI projects and
best realise superior market returns from our equity investments.'

Balfour Beatty has acquired 31.4% of the equity in the Edinburgh Royal Infirmary
healthcare PFI for a consideration of £31.6 million, valuing the total equity in
the project at approximately £100 million. Infrastructure Investors LP (I2),
who previously owned 15%, have increased their interest to 26.1% of the equity.

The transaction reflects Balfour Beatty's confidence that the project will
continue to deliver an attractive market return. Through this transaction,
Balfour Beatty has further consolidated its position as a market-leading
developer and investor in the healthcare market. Through Consort Healthcare and
HMU, it now has four active concessions and three preferred bidder positions in
large hospital projects. The Group now has £114 million of committed investment
in this sector.

In a separate transaction, Balfour Beatty has also sold 15% of three of the
concessions in Connect Roads, its PFI road concession portfolio, to I2 for
£13.5 million, with Balfour Beatty retaining 85% of the economic interest in the
concession. The disposal generates an exceptional profit of £5.7 million over
book value. The current total equity in Connect Roads is now valued at over £90
million.

As Balfour Beatty and I2 will exercise joint control over these road
concessions, this transaction will lead to a deconsolidation of £227 million of
associated net debt from the Group's balance sheet and will simplify and clarify
the presentation of its PFI results. These concessions produced profit before
taxation of £8 million for the year ended 31 December 2004 and had gross assets
of £340 million at 31 December 2004 under UK GAAP.

                                      ENDS

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


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

1.  Balfour Beatty has equity interests in 22 PFI projects.

    These are:
    -  7 hospital schemes, three at preferred bidder stage
    -  5 schools schemes, one at preferred bidder stage
    -  4 road schemes
    -  2 street lighting schemes
    -  2 schemes under the London Underground PPP
    -  1 scheme for the LUL power supply system
    -  1 wastewater scheme.

2.  Balfour Beatty is a world-class engineering, construction and services 
    group, well positioned in infrastructure markets which offer significant 
    growth potential. Its partnerships with public and private customers 
    generate secure, sustainable income. 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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