Balfour Beatty Regulatory News (BBY)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

THIS ANNOUNCEMENT IS AN ANNOUNCEMENT FALLING UNDER RULE 2.8 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE").

FOR IMMEDIATE RELEASE

Announcement Regarding Balfour Beatty plc

20 August 2014

This announcement is being made following the announcement by the Board of Carillion on 19 August 2014 of its improved merger proposal made to Balfour Beatty plc ("Balfour Beatty").

The Board of Balfour Beatty has not agreed to Carillion's proposal or to request an extension to the Put Up or Shut Up deadline which expires at 5pm tomorrow, 21 August 2014. Carillion therefore today announces that it is no longer pursuing such a merger.

For the purposes of Rule 2.8 and other relevant provisions of the Code, Carillion reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for Balfour Beatty or to take any other action permitted pursuant to the Code, within the next six months following the date of this announcement, in the circumstances set out in Note 2 to Rule 2.8 of the Code or otherwise with the consent of the Panel.

In the event that Carillion is permitted pursuant to the Code to announce an offer or possible offer or make or participate in an offer or possible offer for Balfour Beatty, Carillion reserves the right to do so at any price and in any form or mix of consideration.

Enquiries:

CarillionJohn Denning, Director Group Corporate Affairs +44 (0) 1902 316 426

Finsbury (PR Adviser to Carillion)James Murgatroyd +44 (0) 207 251 3801Gordon Simpson

Morgan Stanley & Co. International plc (Joint Corporate Broker)Peter Moorhouse +44 (0) 20 7425 8000

Oriel Securities (Joint Corporate Broker)David Arch +44 (0) 20 7710 7600

Morgan Stanley & Co. International plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting as joint corporate broker to Carillion, and no one else in connection with the matters referred to in this announcement. In connection with such matters, Morgan Stanley & Co. International plc, its affiliates and its and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to any other person other than Carillion for providing the protections afforded to their clients or for providing advice in connection with the contents of this announcement or any other matter referred to herein.

Oriel Securities Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as joint corporate broker to Carillion, and no one else in connection with the matters referred to in this announcement. In connection with such matters, Oriel Securities Limited, its affiliates and its and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to any other person other than Carillion for providing the protections afforded to their clients or for providing advice in connection with the contents of this announcement or any other matter referred to herein.

Publication on websites

A copy of this announcement will be made available subject to certain restrictions relating to persons resident in restricted jurisdictions on Carillion's website at www.carillionplc.com by no later than 12 noon (London time) on 21 August 2014.

The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.