Contract award

Costain Group PLC
21 June 2007



Costain Group PLC
('Costain' or the 'Group')



Financial Close on Second Phase of Three Shires PFI


Costain is pleased to announce that the Arden Partnership, its 50:50 joint
venture with Alfred McAlpine, has reached financial close on The Leicester
Project, the second of three phased Financial Closes to be achieved in the
£76.5m Three Shires PFI Scheme.  The deal was financed by NIBC Bank NV as Lead
Arranger.



The Leicester Learning Disabilities Unit (LDU) Scheme is a £10.5m project for
the design, build and operation of a 2700m2 specialist assessment and treatment
centre for persons with Learning Disabilities, to be built on the site
previously occupied by the Gorse Hill Hospital in Leicester. Design and
construction work will be carried out by Costain, and Alfred McAlpine will
provide the hard FM services.



Phase one of the project, the £30m Lincolnshire Community Hospital Project,
reached Financial Close in May and is now under construction, whilst the third
phase Derby Project, worth £36m, is due to reach Financial Close at the end of
the summer.



Andrew Wyllie, Chief Executive of Costain, said:



'This is an important next step in delivering this significant health sector PFI
scheme.  The project is progressing well, and we are confident of reaching
Financial Close on the third and final phase in due course.'





                                                                    21 June 2007




ENQUIRIES:
Costain Group PLC                                    Tel: [phone]
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Public Relations

College Hill                                         Tel: [phone]
Mark Garraway
Matthew Gregorowski




                      This information is provided by RNS
            The company news service from the London Stock Exchange