Department of the Army and Balfour Beatty Communities Enter into $207 Million Housing Privatization Project at the United States Military Academy at West Point, NY

Business Wire, August 5, 2008

West Point Project Represents Company's 15(th) Military Housing Privatization Project and 42(nd) Military Base in its Portfolio

NEWTOWN SQUARE, Pa. -- Balfour Beatty Communities, LLC announced today that it has finalized agreements with the U.S. Department of the Army to be its private sector partner for the United States Military Academy at West Point military housing privatization project located in Orange County, NY. The Project has a 50-year term, commencing with an eight-year initial development period (IDP) with project costs of approximately $207 million. During the IDP, the Company will oversee and provide the design, construction, renovation, and overall management, maintenance and operational responsibilities for an estimated 824 end-state housing units. The project scope also includes the restoration of 416 historic homes at West Point, which remains the Army's oldest continuously occupied military post within the United States, dating back to 1778.

"We recognize the strategic role that West Point has played throughout our nation's history, and are honored and proud to provide services to this landmark institution. In addition, we are eager to commence site work in order to improve housing conditions for the military families of West Point, while ensuring that the community design reflects its historic qualities and distinction," commented Bruce Robinson, President and CEO of Balfour Beatty Communities.

Congressionally authorized since 1996, the Military Housing Privatization Initiative allows the Department of Defense and Military Services to work with the private sector to upgrade the quality of family housing and operate and maintain that housing. The family housing assets are typically leveraged with private investment to accomplish housing construction and renovation goals faster and at a lower cost than military construction.

Including the West Point Housing Privatization Project, Balfour Beatty Communities, LLC (www.bbcgrp.com) operates 15 military housing privatization projects covering family housing at 42 military bases. The Company has partnered with The Department of the Army for the military family housing privatization projects at:

* Fort Stewart, Hinesville, Georgia and Hunter Army Airfield, Savannah, GA

* Walter Reed Army Medical Center, Washington, DC and Fort Detrick, Frederick, MD

* Fort Hamilton, Brooklyn, NY

* Fort Carson, Colorado Springs, CO

* Fort Gordon, Augusta, GA

* Carlisle Barracks, Carlisle, PA and Picatinny Arsenal, Dover, NJ

* Fort Eustis, Newport News, VA and Fort Story, Virginia Beach, VA

* Fort Bliss, El Paso, TX and White Sands Missile Range, Las Cruces, NM

* Fort Leonard Wood, Pulaski County, MO

In addition, Balfour Beatty Communities partnered with the Department of the Army for the privatization of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at Fort Stewart, Hinesville, GA.

The Company has partnered with the Department of the Navy for its Navy Northeast Region Project, covering eight Naval bases in Maine, Rhode Island, Connecticut, New York and New Jersey, as well as the Navy Southeast Region Project covering 11 Naval bases in South Carolina, Florida, Georgia, Mississippi, and Texas.

The Department of the Air Force also has awarded Balfour Beatty Communities with military housing privatization projects at Vandenberg Air Force Base, Lompoc, California; the Air Education and Training Command (AETC) Group I Project, consisting of four Air Force bases in Oklahoma, Arizona, Texas and Florida; and the Air Mobility Command (AMC) West Project, consisting of three Air Force bases in Washington, California and Oklahoma.

About Balfour Beatty Communities

(www.bbcgrp.com)

Balfour Beatty Communities, LLC (formerly known as GMH Military Housing) is responsible for the development, renovation, operation and management of military privatization housing projects for the U.S. Departments of the Army, Navy and Air Force. The Company has been a leader in the military housing industry, and provides services to members of the U.S. military and their families residing on or near bases located in 20 states and Washington, DC. Currently based in Newtown Square, PA, the company employs approximately 1,000 people nationwide.