Statement re Metronet

Balfour Beatty PLC
18 July 2007


18 July 2007


           METRONET BCV AND METRONET SSL APPLY FOR PPP ADMINISTRATION
           ==========================================================

The directors of Metronet BCV Ltd and Metronet SSL Ltd, the PPP concession
companies responsible for the upgrade and maintenance of two-thirds of London
Underground's rail system under the Public Private Partnership, have asked the
Mayor of London to seek the appointment of a PPP Administrator for these
companies. Balfour Beatty has a 20% interest in these companies.

In its 2007 interim trading update on 26 June, at which time the Metronet
concessions were going concerns, Balfour Beatty announced that there would be an
exceptional charge of approximately £100 million in its half-year accounts in
respect of its interest in Metronet. This arose in the light of the level of
unanticipated costs associated with Metronet's capital programmes and Metronet's
funding position at that time. The charge comprised, largely, the write-off of
Metronet equity and the write-back of profits in respect of the equity
investment, recognised in previous years. In the light of this application, the
exceptional charge may be higher, with the final sum reflecting the extent to
which day-to-day trading balances between Balfour Beatty operating and affiliate
companies and Metronet are recovered.

Balfour Beatty will work closely with Metronet, London Underground and the
Administrator in order to ensure that the daily operations of the tube remain
unaffected over the coming period. The company remains committed to the creation
of a world-class underground system for London and will continue to provide such
services to London Underground as required and requested under the new ownership
structure which succeeds Metronet.

                                      ENDS

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



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