Trading Statement

Costain Group PLC
13 January 2005



Costain Group PLC


Trading Update


Costain Group PLC ('Costain' or 'the Group') will be releasing preliminary
results for the year ended 31st December 2004 on Wednesday 16th March 2005.


The Chairman commented:


'We are pleased to announce the continued progress of the Group in the second
half of the year and that the results for the year will be in line with
expectations. At the end of the year the forward order book is in excess of
£1bn.'


Of particular note was the success in water asset management, securing 5 to 10
year contract wins with Thames, Yorkshire, Welsh Water and Severn Trent and
negotiations are continuing with United Utilities and Southern Water. Turnover
in the Building Division continues to increase with a large number of high
profile schemes including ISIS - another complex high-tech scientific facility
at Harwell, Kingston Hospital, Ealing Schools and the St Martins-in-the-Fields
re-development.


Our new financial year has got off to an encouraging start with the announcement
of the first contract win by our joint venture with China Harbour. This
contract, valued at $170 million over 3 years with the construction of the
breakwater for a liquefied natural gas (LNG) receipt terminal, is a significant
step forward for both the joint venture and for Costain as the Group rebuilds
its international portfolio of major contract work.


Our Building Division, as construction partner to Serco Group plc, has also been
selected as preferred bidder for the Ministry of Defence's ('MoD') Defence
Academy Campus Integrator contract in Shrivenham, Wilts. Costain will be
responsible for the management and integration of the design and build of a new
centre of excellence worth a potential £85 million.



Stuart Doughty, Chief Executive, commented:


'Costain made further, and significant, progress during the year.  These recent
contract wins and those in the utilities sector underline the recognition that
Costain is a leading contractor, having significantly de-risked the business and
focussing on key areas of operation in both building and civil engineering.  I
look forward to presenting the outcome for the year.'


                                                                 13 January 2005


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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