Signing of MoD Contract

Costain Group PLC
14 February 2005


Costain Group PLC
('Costain')

Signing of £80 million MoD Contract

Costain, as construction partner to Serco Group plc, has signed a contract with
the Ministry of Defence ('MoD') for its Defence Academy Campus Integrator
project in Shrivenham, Wilts.

Costain and Serco will work with the MoD in integrating its three existing
post-graduate education Colleges to create an international academic centre of
excellence for senior military and civilian personnel.  Costain will be
responsible for the management and integration of the design and build phase,
worth a potential £80 million.

Stuart Doughty, Chief Executive, commented:

'We are pleased to have signed another important contract with the Ministry of
Defence.  Our Building division continues to make progress, strengthened by good
repeat business from key clients.'

                                                                14 February 2005

Enquiries:

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

College Hill                                 Tel. [phone]
Matthew Gregorowski


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