PFI Scheme Awards

Costain Group PLC
29 July 2005

Costain Group PLC

('Costain')



Two Major PFI Scheme Awards


Costain is pleased to announce that it has reached key milestones on two major
PFI schemes in the health and education sectors worth at least £116m.


For the London Borough of Ealing, Costain has reached financial close on a £51m
project to design, build and operate the new Featherstone primary school and two
secondary schools and sports facilities at Acton High and Greenford High
Schools, as part of the Seafort consortium with King Sturge and NIB Capital
Bank.  Costain's design and build team have started on site, and completion of
the primary school is anticipated in 2006 with the two secondary schools to be
completed in 2007.


Costain, as part of the Arden Partnership with Alfred McAlpine, has also been
awarded Batch Partner status (preferred partner) for the Shires3 PFI Batch -
consisting of Derbyshire Mental Health NHS Trust, East Lincolnshire Primary Care
Trust and Leicestershire Partnership Trust.  Costain will work with each of the
Batch Trusts to bring the design, build and operate PFI projects to their
separate financial closes by the Autumn of next year. The schemes have a capital
value of £65m and a number of additional schemes, which are subject to approval,
could bring the capital value up to £150m.   Costain will undertake the design
and build and Alfred McAlpine will provide the facilities management.  This is
the first NHS batched PFI scheme to reach Batch Partner status.



Charles McCole, Costain Finance Director, said:

'We are delighted to have been awarded these PFI projects in two of our key
strategic sectors.  Costain is becoming a major player in the PFI market in
areas in which we have significant expertise and experience.  We have now
enjoyed recent contract successes across all of our divisions which demonstrates
the strength of our partnering approach to winning new work.'


                                                                    29 July 2005



Enquiries:

Costain Group PLC                               Tel: [phone]
Charles McCole, 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