Financial close on UU AMP4

Costain Group PLC
16 May 2005

Costain Group PLC

('Costain' or 'the Company')



Financial close on United Utilities AMP 4 framework agreement



Following the announcement in March that Costain, in joint venture with
Galliford Try and WS Atkins, had been selected as preferred bidder by United
Utilities for a major part of its Asset Management Programme ('AMP4'), the
Company is pleased to announce that it has reached financial close on the
framework agreement.



The contract, which covers some 20% of United Utilities' £2.9 billion AMP4
programme over the next five years, will deliver both water and wastewater
infrastructure works throughout the North West of England.



Stuart Doughty, Costain Group Chief Executive, said:



'This contract confirms Costain's leading position in the water sector.  We now
have five to ten year contracts in place with United Utilities, Thames Water,
Yorkshire Water, Welsh Water and Southern Water.  This level of workflow
considerably strengthens our long-term order book and is an excellent platform
for the future.'



Steven Beaumont, who has overall responsibility for the procurement and
investment delivery process for United Utilities, said:



'I am delighted to be working with partners that have such a breadth of
expertise and I am confident that our new relationships and collaborative way of
working will help us achieve the ambitious goals we have set ourselves.   I am
looking forward to working closely with our new partners in our aim to achieve
industry leading performance for our investment programme over the next five
years.'





                                                                     16 May 2005



Enquiries:


Costain Group PLC                                   Tel: [phone]
    Stuart Doughty, Chief Executive
    Graham Read, Public Relations

College Hill                                        Tel: [phone]
    Mark Garraway                                   [e-mail]
    Matthew Gregorowski                             [e-mail]





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