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Major new contract wins to the value of HK$2.6 billion for Gammon in Hong Kong

The largest contract, with a value of £140 million, has been awarded by the Kowloon-Canton Railway Corporation for part of the Kowloon Southern Link, comprising West Kowloon Station and the construction of cut and cover and bored tunnels from West Kowloon Station via Jordon Road to East Tsim Sha Tsui Station. Gammon has also secured new contracts at the Venetian Hotel and Casino complex in Macau, to build the West Podium Superstructure and to design and install the MVAC (air conditioning) and electrical systems for the new hotel.

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

“In securing these new contracts, which build on existing relationships, Gammon has once again demonstrated its pre-eminent position in the Hong Kong and surrounding civil engineering and building markets. I am confident that we will see Gammon making further good progress in the coming years.”

The Kowloon Southern Link is a design and build contract and comprises the new 380 metre by 26 metre West Kowloon Station, a 100 metre long section of concrete box tunnel and twin eight metre diameter bored tunnels, both more than one kilometre in length. It will be carried out in joint venture with completion planned for 2009.

In Macau, the main contract to build the Venetian Hotel, secured by Gammon in March this year and worth £175 million, is already under way. Gammon is now contracted for the construction of the five-level Podium, worth £29 million, which will contain the casino itself and retail, leisure and entertainment areas. Gammon is also to design and install the MVAC and electrical installations for the first 1,500 guestrooms in the hotel in a contract worth £16 million. Both will be carried out in joint venture with local contractors.

The Venetian Macao Hotel will be a 32-storey tower that will accommodate 3,000 hotel suites scheduled to open in 2007.

Enquiries to:

Tim Sharp
Tel: 020 7216 6884

www.balfourbeatty.com

Notes to Editors

1. Gammon is a strong, broadly-based construction group with an overall Hong Kong market share of approximately 10%. Balfour Beatty owns 50%, with Jardine Matheson, Asian market leaders in a number of business fields, owning the other 50%.

2. Gammon’s main business is in civil engineering, foundation engineering and major building construction. It also owns a number of businesses which support its main contracting activities, including the leading electrical contracting business previously 100%-owned by Balfour Beatty. Its principal customers include Hongkong Land, the Swire Group, Kowloon Canton Railway Corporation and the Mass Transit Railway Corporation.

3. 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.