AGM Statement

Costain Group PLC
10 May 2007


Costain Group PLC
('Costain' or the 'Group')

Annual General Meeting

At the Company's Annual General Meeting, to be held later today, the Chairman,
David Jefferies, will make the following comments:

'I am pleased to report that the current year is progressing in line with the
Board's expectations.

'Costain continues to secure major contracts.  Just this week, we have announced
our first maintenance contract from the Highways Agency for the day-to-day
management of motorways and strategic roads in Greater Manchester, Cheshire,
Merseyside and parts of Lancashire.  That contract is worth £158m to the
joint-venture with Colas and Halcrow over a duration of five years.

'We announced last week that we had reached financial close on the £30m
Lincolnshire Project, the first of three phases of the Three Shires PFI Scheme.
The project is for the design, build and operation of a 8,500sqm Community
Hospital and ancillary services.  There are two further projects to come as part
of this scheme which are due to reach financial close this summer.

'Both contracts provide further evidence of the success of our 'Being Number
One' strategy which focuses on key sectors.  In the Highways sector, we have an
excellent relationship with the Highways Agency, we are one of the UK's leading
road constructors and we have now gained our first significant contract in
highway maintenance operations.    Meanwhile, reaching financial close on
another PFI scheme in the health sector is testimony to the strong relationships
we are developing with key NHS Trusts across the UK.

'The Board considers that certain Group assets have a value in excess of their
carrying cost, and is examining ways of recognising that value in order to
strengthen the balance sheet.  The Board believes that a stronger balance sheet
is needed to take advantage of the greater commercial opportunities available to
the Group.

'I look forward to reporting on further progress.'


                                                                     10 May 2007


ENQUIRIES:
Costain Group PLC                                             Tel: [phone]
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Public Relations

College Hill                                                  Tel: [phone]
Mark Garraway
Matthew Gregorowski




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