Costain Group PLC

Nuclear Contract

Costain Group PLC
12 September 2006

Costain Group PLC

('Costain' or the 'Group')

Contract Award on nuclear project

Costain has been awarded the contract for the provision of the Sellafield
Additional HA (Highly Active) Evaporator Project for British Nuclear Group
Sellafield Limited ('BN-GSL').

The indicative value of the contract at £90m  will be  one of the largest
contracts to be placed so far under the guidance of the Nuclear Decommissioning
Authority, NDA, the Government body set up to oversee the UK's Nuclear
Decommissioning Activities.  Stage 1 of the project, lasting approximately 13
months, will develop and define the design of the facilities that will be used
to expand Sellafield's ability to process nuclear waste material and ultimately
reduce inventories at the site.

This first phase of the work will be executed in Costain's offices in
Manchester. Costain has worked closely with BN-GSL to complete final details on
the contract prior to formal award and project mobilisation.

Andrew Wyllie, Chief Executive, commented:

'We are delighted to have been awarded the contract for this project.  In line
with the Group's new Being Number One strategy, we are concentrating on
developing the Group's presence in a number of growth arenas including the
nuclear sector.'

                                                               12 September 2006


Costain Group PLC                                               Tel: 01628 842 444
Graham Read, Public Relations

College Hill                                                    Tel: 020 7457 2020
Mark Garraway

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