AGM Statement

Costain Group PLC
29 April 2004



Costain Group PLC

('Costain' or the 'Company')


Annual General Meeting



At the Company's Annual General Meeting held today, the Chairman, David
Jefferies made the following comments:



'We are extremely pleased with the 2003 results which confirm the progress made
by the Company over the last three years.



'We are focussed on working in close collaboration with our key customers in key
sectors including water, transportation and healthcare.  As a result of the
success of this strategy, the Board has taken the decision to enter new sectors,
including education and nuclear, during the course of the year.



'The Company's forward order book remains healthy.  It is particularly pleasing
to report that already in this financial year our Building division has made
significant progress and is in final negotiations on several projects worth
approximately £250 million which will provide some £70 million of turnover in
2004.



'With regard to Asset Management in the water sector we are in the process of
negotiating the next round of regulatory targets, working hard to ensure that we
maintain our leading position in this sector as it enters the next five year
phase.



'In Civil Engineering, as part of a joint venture working on the refurbishment
of St Pancras Station (CTRL 105) Channel Tunnel Rail Link, we achieved a
landmark recently by completing the Eastern Interim Station.  The refurbished
existing Barlow Trainshed and the new extension will provide a modern
international railway terminus capable of handling passengers from the
equivalent of eight jumbo jets per hour.



'International Business continues to make progress and we look forward to even
closer working relationships with our two key shareholders, United Engineers
(Malaysia) Berhad and Kharafi.



'We announced in March that the Board is looking at proposals to reconstruct the
Company's balance sheet with a view to facilitating the resumption of dividend
payments when appropriate. Whilst there are certain legal and technical
obstacles to overcome, it remains our intention to conclude the process as soon
as is practicable.



'In summary, your Company made significant progress during 2003 and the results
provide a solid platform on which to profitably build the business going
forward.  The current year has started well and the Board is confident of
performing in line with expectations'.



                                                                   29 April 2004



Enquiries:

Costain Group PLC                                     Tel: [phone]

    Stuart Doughty, Chief Executive
    Charles McCole, Finance Director
    Graham Read, Public Relations

College Hill                                   Tel: [phone]
    Mark Garraway                              [e-mail]
    Matthew Gregorowski                        [e-mail]






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