Re Contract

Balfour Beatty PLC
08 November 2005


8 November 2005



              BALFOUR BEATTY AWARDED £171 MILLION A421 ROAD SCHEME
                             BY THE HIGHWAYS AGENCY
                             ======================

Balfour Beatty, the international engineering, construction and services group,
announces today that the Highways Agency has awarded Balfour Beatty Civil
Engineering the Early Contractor Involvement (ECI) contract for the A421 scheme
between the M1 and Bedford.

The Highways Agency scheme budget for the contract is £171 million. The
construction programme is due to start in early 2008, with the new road
scheduled to open in 2010. Work on the design development, statutory process and
environmental statement will commence immediately.

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

'We are very pleased to have been awarded a sixth Early Contractor Involvement
scheme by the Highways Agency. The opportunity afforded by this form of contract
to work in partnership with the customer, the designer and other stakeholder
groups in developing the scheme helps ensure the best possible project
out-turn.'

The existing A421 is largely single carriageway, is extremely busy and carries a
high proportion of HGV traffic. In the new scheme, M1 Junction 13 will be
remodelled and a 13 kilometre dual carriageway will be built linking the M1 with
the existing ring road to the south of Bedford.

Balfour Beatty's current ECI portfolio consists of the A1(M) Bramham to Wetherby
upgrading, the A3 Hindhead improvement, the A303 scheme adjacent to Stonehenge,
the A46 Newark to Widmerpool improvement and the M1 Junction 6a to 10 widening
scheme which will commence construction early next year.

                                      ENDS

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


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

1.  Balfour Beatty Civil Engineering is a UK leader in road building and 
    widening schemes. In December this year, it will hand over the major M25 
    widening scheme adjacent to Heathrow Airport ahead of schedule. In April, 
    it completed the £132 million M77/Glasgow Southern Orbital PFI scheme in 
    Scotland on time and on budget.

2.  Balfour Beatty owns and operates four PFI road schemes. These are the M1/A1
    Link in Yorkshire, the A30/A35 in Devon and Dorset, the A50 in Derbyshire 
    and the M77/GSO in Scotland.

3.  Through its subsidiary, RCS, Balfour Beatty is a leading road manager and
    maintainer with a wide range of contracts for the Highways Agency and local
    authorities.

4.  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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