AMP4 Contract Wins

Costain Group PLC
01 March 2005





Costain Group PLC

('Costain' or the 'Company')


Landmark AMP4 Contract Wins from United Utilities


Costain is pleased to announce that it has been selected by United Utilities as
one of its preferred bidder partners for some 40% of its £2.9 billion asset
management programme ('AMP4') over the next five years.


United Utilities is awarding contracts for designing the upgrades and
improvements to its water and wastewater treatment works as well as major sewer
overflow schemes.


Costain, in joint venture with Galliford Try and Atkins, will be responsible for
the detailed design work and the construction and commissioning phase of these
projects.


A final decision on the contract award, which over the next five years is
estimated to be worth some £900m to the joint venture consortium, is expected by
the end of March.


Commenting on the announcement from United Utilities, Stuart Doughty, Chief
Executive of Costain, said:


'This is excellent news for Costain.  The announcement is evidence of the very
close relationship we have established with United Utilities.  We look forward
to working in partnership with them and the other joint venture companies over
the coming years.  The news is also further evidence of Costain's excellent
reputation in the water sector as a whole and follows other major AMP4 contract
awards from Thames Water, Welsh Water and Yorkshire Water.'



United Utilities' Steven Beaumont said:



'The delivery of our current investment programme has shown that framework
contracts are the right way forward for United Utilities.  We're now building on
that experience and developing it in line with industry best practice to ensure
our next investment programme will be a success.  Our new long-term arrangements
will drive out the benefits of a true partnership approach through the creation
of integrated seamless teams between ourselves and our partners.'



                                                                    1 March 2005


Enquiries:


Costain Group PLC                                            Tel: [phone]

    Stuart Doughty, Chief Executive
    Charles McCole, Finance Director
    Graham Read, Public Relations


College Hill                                                 Tel: [phone]

    Mark Garraway
    Matthew Gregorowski




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