Contract Award

Costain Group PLC
18 February 2002



                               COSTAIN GROUP PLC


       Major utility contract award for Costain joint venture partnership


United Utilities today announced the award of three major framework agreements,
each potentially worth up to £250 million, for the construction of new projects
within its water sector.


Costain Ltd, in joint venture with Galliford Try plc, is one of three successful
joint ventures selected by United Utilities to undertake the vast majority of
new construction projects for the next three years, including major assets such
as water and wastewater treatment works.


Stuart Doughty, chief executive of Costain comments:


'As part of the Galliford/Costain joint venture, we are delighted to have won
this significant contract.  This project further demonstrates that we are
maximising asset management opportunities and are on track to achieve equal
proportions of asset management and contracting by 2003, a key element of our
strategy review.'

                                                               18 February 2002

ENQUIRIES:

Costain Group PLC                                 Tel: [phone]
Graham Read, Public Relations

College Hill                                      Tel: [phone]
Mark Garraway                               Email: [e-mail]
Lisa Pearson                                Email: [e-mail]


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