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Consort Healthcare reaches financial close on £553 million University Hospital Birmingham PFI

Highlights:

• The concession is for 35 years following completion of the five-year, two-month
  construction period, and will deliver the first new general hospital in Birmingham for
  70 years;


• Balfour Beatty is contributing £23 million of equity to the project;


• financial close on University Hospital Birmingham reinforces Balfour Beatty’s
  leading position in the UK PPP healthcare market - Consort Healthcare is currently
  the PPP concession company for five major hospitals;


• Balfour Beatty is a leader in the UK PPP market with approaching £300 million
  invested in 22 projects in the healthcare, education, roads/street lighting and other
  infrastructure sectors.

The project comprises a new acute hospital with capacity of 1,213 beds, a 108-bed
specialist psychiatric hospital and teaching facility and a separate 32 bedded mental
health local facility in Sparkbrook. It is central to the reconfiguration of hospital
services and the improvement of clinical facilities in Birmingham.

The mental health facilities will open in 2008 and the first phase of the main acute
hospital will open in 2010. The remainder of the new build acute facilities are
scheduled to come on stream in 2011. Balfour Beatty’s partners for the scheme are
Royal Bank of Scotland and HSBC.

Commenting today, Balfour Beatty Chief Executive Ian Tyler said:

“We are delighted to reach financial close on this very substantial project which will
relocate most of South Birmingham’s key medical facilities to a single, state-of-theart
site and address the Trust’s ambitions for greater efficiency, more space and
improved patient care.

Balfour Beatty brings many decades of experience in the healthcare sector and the
benefits of its market-leading expertise in planning, constructing and operating large
PPP hospitals to this very important project.”

The construction work, which has been underway for some time, is being carried out
by a joint venture between Balfour Beatty Construction and Haden Young, the
building services arm of the Balfour Beatty Group. Facilities management will be
provided by Haden Building Management, another Balfour Beatty subsidiary, under
an arrangement that could yield £300 million of long-term service revenue over the
life of the concession.

Balfour Beatty is the leader in the UK PPP healthcare market. Consort Healthcare has
five other PPP healthcare concessions. These are the North Durham Hospital, which
was opened in 2001, and the Edinburgh Royal Infirmary, which became fully
operational in early 2003. The new Blackburn Hospital is due to open fully in July
2006.

Consort Healthcare is preferred bidder for the Pinderfields and Pontefract Hospitals in
Yorkshire and the Northern Batched Hospitals scheme in Manchester, which will
have a combined capital value of some £440 million. Balfour Beatty is also a partner
in Health Management Group, the concession company responsible for the new
University College London Hospital, the first phase of which opened in 2005.
These schemes represent a committed equity investment of £112 million.

Balfour Beatty Construction and Haden Young are also active on PPP hospitals in
which other parties hold the concession. These include construction for the £160
million new Victoria and Stobhill Hospitals scheme in Glasgow and electrical and
mechanical services for Hereford County Hospital, Kings College London Hospital
and the Queens Medical Centre, Nottingham.

Enquiries to:

Tim Sharp
Tel: 020 7216 6884

www.balfourbeatty.com

Notes to Editors

1. Balfour Beatty is a leader in the UK PPP market with approaching £300
   million invested in 22 projects and a team of approaching 200 dedicated
   professionals in its specialist management company Balfour Beatty Capital.


2. In addition to its strong position in healthcare, Balfour Beatty is a leader in
   education (five projects, equity invested £30 million), roads and street lighting
   (six projects, £61 million invested) and in other infrastructure (four projects,
   £80 million invested).


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.