Re Contract

Balfour Beatty PLC
06 September 2007


6 September 2007



     BALFOUR BEATTY SECURES £200 MILLION OF MAJOR NEW PROJECT WORK IN ASIA
     =====================================================================

            Contract awards in Hong Kong, Singapore, Macau and China
            --------------------------------------------------------

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that Gammon Construction, Hong Kong's leading
construction group, in which Balfour Beatty has a 50% interest, and Balfour
Beatty Rail have secured approximately £200 million of major new project work in
Hong Kong, Singapore, Macau and China.

In Singapore, Gammon has been awarded the contract to design, construct and
commission the new Chinatown Interchange Station. The project, which is valued
at approximately £55 million, involves new station construction, crossing over
the existing Chinatown Station on the North East Line, overrun tunnels, and
connecting tunnels to the adjoining Cross Street Station. The project, which is
part of Stage 1 of the new Downtown Line development, is due for completion in
2013.

In Macau, in a project of similar value, Gammon has been awarded the contract to
construct a retail podium and a 42-storey, 2,000-room hotel tower for Venetian
Orient, as part of Macau's rapid development as a regional leisure and
recreational centre. The project is due for completion in the summer of next
year. This follows on from Gammon's successful delivery of the £230 million The
Venetian(R) Macao-Resort-Hotel, which opened on 28th August 2007.

In Hong Kong, work commenced recently on a £33 million project to design and
construct four service reservoirs, a link bridge and a range of civil
engineering work for The University of Hong Kong in a project due to be
completed by September 2009.

In China, Balfour Beatty Rail has been, awarded a £35 million contract in
respect of the design, supply, supervision of installation and commissioning of
the catenary system for the new high-speed dedicated passenger railway line
between Wuhan and Guangzhou by the Chinese Ministry of Railways. The new
968-kilometre double-track line will operate with a line speed of 300 kilometres
per hour. The project will be completed by the end of 2009. This project follows
Balfour Beatty Rail's successful completion of the electrification of the 950
kilometre Harbin-Dalian railway line. Balfour Beatty has been responsible for
more than 5,000 kilometres of rail electrification work since 1999. The company
is currently also working in China on the electrification project for Tianjin to
Shenyang.

Commenting on these awards today, Balfour Beatty Chief Executive, Ian Tyler,
said:

'Balfour Beatty has a substantial presence in South-East Asia, which is one of
its targeted territories for long-term growth. Through Gammon, we are Hong
Kong's leading construction company. Their successful expansion in the
fast-growing markets of Macau and Singapore is progressing very satisfactorily.
We also anticipate further opportunities in the Chinese rail market, based on
our experience, our status as a wholly-owned Foreign Enterprise and our
excellent relationships with the Chinese Ministry of Railways.'

                                      ENDS

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


Image
-----

An artist's impression of the completed The Venetian(R) Macao-Resort-Hotel is
available upon request.


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

1. Gammon Construction is Hong Kong's leading construction company. Balfour
Beatty is a regional 50% shareholder in Gammon, with Hong Kong-based
conglomeration, Jardine Matheson. It employs over 2,000 people and has projected
2007 revenues of approximately £500 million.

Gammon's recent and current projects include:

- The Venetian(R) Macao-Resort-Hotel comprises construction and electrical and
mechanical work to a total value of approximately £230 million

- The Kowloon South Rail Link comprising West Kowloon Station and the connecting
tunnel valued at £140 million

- The Hong Kong section of Hong Kong-Shenzhen Western Corridor, comprising
construction of a 3.5 km long dual three-lane carriageway valued at HK$2.2
billion (£162 million)

- The £150 million contract to build the 70-storey One Island East for Swire
Properties.

2. Balfour Beatty Rail operates in China as a Wholly Owned Foreign Enterprise
(WOFE). It has carried out a number of projects in China, most notably the
Harbin-Dalian electrification and power supply project completed in 2002.

3. 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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange