Southern Water Contract

Costain Group PLC
16 March 2005



Costain Group PLC

('Costain' or the 'Company')





Consortium Named as Preferred Bidder for Southern Water Contract



Southern Water has today named a consortium comprising United Utilities, Costain
and Montgomery Watson Harza as preferred bidder to help deliver the major part
of its £1.5 billion water quality and environmental improvement programme.



The consortium - known as 4Delivery - would be responsible for delivering more
than 250 water and wastewater improvement schemes which form part of Southern
Water's five-year capital investment programme.



4Delivery would be responsible for project managing, designing and delivering
the new schemes and improvements to water and wastewater assets across parts of
Hampshire, West and East Sussex, Kent and the Isle of Wight.



The consortium is working exclusively with Southern Water towards a contract
award at end of March with operations commencing at the beginning of April 2005.





                                                                   16 March 2005



Enquiries:


Costain Group PLC                                            Tel: [phone]

    Stuart Doughty, Chief Executive
    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    

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