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Balfour Beatty secures over $1 billion of new US project work

Heery expands its capabilities with Miami acquisition

Balfour Beatty, the international engineering, construction, services and investment group, announces today that its US subsidiaries, Balfour Beatty Construction LLC, Balfour Beatty Infrastructure, Inc. and Heery International, have recently secured new project work with a total value of approximately $1.1 billion.

The largest contract, which has been won by Heery International, is the design and build project for a new $230 million Federal Correctional Institution located at Berlin, New Hampshire, for the Federal Bureau of Prisons, a long-term Heery client. One of the largest public works contracts ever undertaken in the state, the 1,200-inmate medium security institution also includes housing, educational, vocational, healthcare and administration space and is scheduled for a 37-month design and construction programme.

Additionally, Heery International has recently completed the acquisition of Sequeira & Gavarrete, the Miami-based design and architectural project management firm. In addition to creating a strong South Florida presence, this acquisition significantly extends Heery's aviation sector expertise. Sequeira & Gavarrete are responsible currently for the programme management for the $2.6 billion North Terminal Development and the $300 million Intermodal Centre Rental Car Facility at Miami International Airport.

Balfour Beatty Infrastructure, Inc., the Group's US civil engineering arm, has secured new highways projects near Austin and Houston in Texas and near Los Angeles for the respective State Departments of Transportation, with a total value in excess of $200 million. The largest is for a 10-mile four-lane stretch of highway to connect US 183 and Interstate 35 near Austin, Texas, which is scheduled to commence construction in mid-June.

Balfour Beatty Construction LLC (formerly Centex Construction) has won over $540 million of new work in the period since its acquisition which was completed on March 30th of this year.

In the military housing sector, it has recently secured two major new awards for the US Army. These are for 675 new homes at Fort Jackson in South Carolina and 158 new homes at the US Military Academy at West Point in New York in contracts valued at approximately $200 million.

Other recent project announcements include the $180 million Pueblo of Pojoaque resort and casino, 12 miles north of Santa Fe in New Mexico; the $107 million Vanderbilt University Medical Centre in Nashville, Tennessee; and the $140 million 33-storey Atlantic Centre building in Fort Lauderdale, Florida, that city's first hurricane-resistant building, comprising Class A office space and a retail and restaurant complex.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

"We have a strong and growing presence, with annual revenues in excess of $3.5 billion, in selected building and infrastructure markets in the US, which offer us a variety of high-quality opportunities. We anticipate further growth in our already substantial order book as we continue to build on our wide range of proven long-term customer relationships."

ENDS

Media/Analyst enquiries:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors:

1. Heery International is a 1,000-person architecture, interior design, engineering, facility management, project management and construction management firm responsible for managing nearly $5 billion in construction per year.  Heery is recognized annually by US industry publications such as Building Design & Construction and Engineering News Record as one of the nation's leading firms.
   
   
2. Balfour Beatty Construction, based in Dallas, Texas, is one of the US's leading commercial building companies with annual revenues in excess of $2 billion. Its business activities are concentrated in the high-growth states of Texas, Florida and North Carolina and in Washington DC.
   
   
3. Balfour Beatty Infrastructure, Inc., based in Atlanta, is a leading civil engineering company with substantial and successful state-based businesses in California and Texas and in tunnelling technology.
   
   
4. Balfour Beatty Rail Inc is a national multidisciplinary contractor based in Jacksonville, Florida.
   
   
5. 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.