Balfour Beatty Regulatory News (BBY)

16 October 2014

BALFOUR BEATTY CHOSEN FOR US $533 MILLION PROJECT TO CONSTRUCT MAJOR NEW HOSPITAL AND TRANSFORM TEXAS MEDICAL CAMPUS

Balfour Beatty plc announces today that it has signed a US$533 million contract (£329 million) to renovate and expand the Texas Medical Center campus in Houston, Texas, USA.

This complex project for the Memorial Hermann Healthcare System (MHHS) includes building a 17-storey hospital, implementing a building control system for the entire campus and ensuring all hospital services function fully throughout the four year construction timeframe, which starts imminently.

The new Hermann Pavilion 2 hospital will provide the Texas Medical Center with 24 additional operating theatres, further emergency rooms and intensive care wards, 160 new patient beds and six floors to further expand both wards and operating facilities. Connecting all building controls and fire alarm systems onto one platform for the entire campus will improve MHHS's overall control of systems and deliver significant energy consumption savings.

During its 27 year long relationship with MHHS, Balfour Beatty Construction has delivered more than 225 improvement projects.

Mark Layman, CEO of Balfour Beatty's US construction business, said: "This latest programme is a response to increasing healthcare needs as the population of the Houston area grows. A project of this complexity requires state-of-the-art construction methodology to ensure the ongoing health services are not disrupted. We will use the latest construction techniques, pre-fabricate off-site as much as possible and use digital technology to deliver this project efficiently."

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Notes to editors:

Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance. Balfour Beatty is the third largest general builder in the US.