Strategy Review

Costain Group PLC
8 November 2001


                              COSTAIN GROUP PLC


               Costain announces strategy to accelerate growth

Costain Group PLC ('Costain') today announces that, following a review
initiated by the new Chief Executive, Stuart Doughty, a revised strategy to
enable the Group to increase turnover by 15% year on year and achieve 3% group
operating margin has been implemented.

The strategy, agreed by the Board, aims to achieve equal proportions of asset
management and contracting by 2003 and to develop Costain's activities in
international markets.

The key elements of the strategy are:

-       increasing the company's exposure to PFI projects

-       expanding internationally, generating a target £85m turnover and 5%
        net margin by 2003

-       expanding Costain Oil Gas & Process ('COGAP'), aiming to achieve a
        turnover of £85m by 2004 (current turnover approx. £60m)

-       refocusing the company's UK activities including re-establishing a
        presence in the Midlands and tendering in Scotland only for substantial
        projects

-       recruiting an additional 400 staff


Commenting on the strategic review, Stuart Doughty, Chief Executive, said:

'Ongoing change is essential for any company in a fast moving market
environment. We are moving forward with every intention of growing rapidly. I
have the support of the major shareholders and the commitment of the Board to
invest in PFI opportunities.  Costain has a market position and reputation on
which we can build a success story going forward and this strategy is the
beginning of that process.'


                                                               8 November 2001


ENQUIRIES:

Costain Group PLC                                            Tel: [phone]
Graham Read, Public Relations

College Hill                                                 Tel: [phone]
Mark Garraway                              email: [e-mail]
Lisa Pearson                                email: [e-mail]