PFI Contracts

Costain Group PLC
25 November 2004


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


PFI Contracts in Health and Education

Costain is pleased to announce two significant Private Finance Initiatives (PFI)
contracts in the health and education sectors with a combined value to the Group
of approximately £81m.

In education, as part of the Seafort consortium, Costain has been selected by
Ealing Council as preferred partner for its second round of school PFIs to
design, build and operate three new schools by 2006.

The projects involve £113.4 million of investment in Acton and Greenford High
Schools and Featherstone and Glebe Nursery School during the 25 year contract,
of which £47.7m will be construction costs.  The contract for the work is
expected to be agreed early in 2005 with work starting on site by early spring.

In health, as part of the Prime Health Consortium, Costain has reached agreement
and financial close with Kingston Hospital NHS Trust for a £33 million PFI
development at Kingston Hospital.

The project involves construction of a new building which will provide modern
and high specification clinical facilities including new surgical and
gynaecology wards and assessment units, a modern physiotherapy services
department as well as education and dining facilities.  Enabling works will
start next month with completion scheduled for the summer of 2006.

Stuart Doughty, Group Chief Executive, said:

'We are very pleased to have secured these contracts, which further strengthen
our presence in the health and education sectors, while developing our skills in
the PFI arena.

These are exactly the type of projects we are looking to be involved in, as part
of long term agreements with our partners and clients and following detailed
negotiations between all parties to ensure the best possible results.'

                                                                25 November 2004

Enquiries:

Costain Group PLC                                            Tel: [phone]
    Stuart Doughty, Chief Executive
    Charles McCole, Finance Director

College Hill                                                 Tel: [phone]
    Mark Garraway
    Matthew Gregorowski


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