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£220 million of major new orders for Balfour Beatty in Dubai

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Dutco Balfour Beatty Group, one of Dubai's leading construction groups, in which Balfour Beatty has a 49% interest, has secured two key projects totalling 1.5 billion UAE Dirhams (£220 million).

BK Gulf, which is the mechanical and electrical contracting business within the Dutco Balfour Beatty Group, has been awarded the contract for the supply and installation of M&E and key operational systems for the University Hospital in Dubai. BK Gulf has been selected by Dubai Health Care City as one of the main delivery partners for the hospital. The project, valued at 650 million UAED, will commence on site in the third quarter of 2008 and will complete in 2010.

The Building Division of Dutco Balfour Beatty has secured the contract to construct a new Novotel Hotel complex in the Al Barsha district of Dubai. This project, for a private developer, is valued at 840 million UAED. The project comprises three individual towers of 35 storeys constructed on a common nine storey basement and podium section. Site preparation has already been completed and therefore the project will commence in the second quarter of 2008 and be completed by the end of 2010.

Commenting on the awards today, Balfour Beatty Chief Executive, Ian Tyler, said: "These contract wins further demonstrate the strength of our business in the UAE. Balfour Beatty has been an established player in Dubai for more than 30 years. In that time, we have earned a strong reputation for the timely delivery of complex major projects such as these. We anticipate further awards in the near future that will support our continuing growth in the Middle East region."

ENDS

Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors

1. Balfour Beatty's interests in Dubai comprise 49% interests in Dutco Balfour Beatty, a building and civil and marine engineering contractor, and BK Gulf, a mechanical and electrical engineering contractor.
   
   
2. These businesses will have combined revenues of over £600 million in 2008.
   
   
3. Amongst major current projects are the Burj Mall, the world's biggest shopping centre scheduled to open later this year, and major improvement and extension projects in the Emirates and Sheikh Zayed roads.
   
   
4. 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. Balfour Beatty's 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.