AGM Statement

Costain Group PLC
28 April 2005

Costain Group PLC

('Costain' or the 'Company')



ANNUAL GENERAL MEETING

28 April 2005





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



'When we announced our results for the year ended 31 December 2004, we reported
that, in addition to an outstanding result for the year, we had also made a
strong start to 2005 as a result of which our forward order book had moved from
£1.1 billion at the end of 2004 to £1.5 billion today.



'This achievement was in no small part due to our success in winning a number of
major contracts in the water sector, including work for Thames Water, Yorkshire
Water and Welsh Water in respect of their Asset Management Programme
requirements over the next five to ten years.



'Since the year-end we have announced further success in the water arena with a
contract for the major part of Southern Water's £1.5 billion five-year capital
investment programme.  I am also pleased to tell you that we are very close to
finalising terms with United Utilities in respect of their five-year water
framework contract.



'These contract wins, which together give Costain in excess of 20% of the UK's
AMP4 expenditure programme over the next five years, are of great significance
to Costain in that they give the Group sustainable earnings amounting to 50% of
its forward order book for the next five years.  To have an earnings stream of
this quality and duration is an extremely strong platform from which to build on
existing and new activity.'



'We also enjoyed success elsewhere across the Group.  In particular, I would
highlight our joint venture with China Harbour which is giving Costain access a
significant proportion of the global ports and harbours market where there is
considerable investment projected by the major port operators.  This has already
borne fruit with our first contract award, at the end of last year, for the
Costa Azul Gas project in Mexico, valued at US$170 million.  There is an
opportunity to build on this success and we are awaiting the result of a number
of bids submitted in the latter part of 2004.



'Another significant achievement was the return to profitability in our Building
division on the back of a near 60% increase in turnover during the year.  A
further sign of the division's return to health is that, with in excess of £230
million of work under negotiation as preferred contractor, we have already
secured over 60% of the 2005 forward order book.



'I am very pleased to report that this week the Company received the prestigious
'Major Contractor of the Year' award at the Building Magazine Awards.  The
judges said: 'Costain has made such magnificent bounds forward that the judges
felt compelled to give it this award'.



'It is through a constant focus on our plan for growth that we have rebuilt and
enhanced Costain's reputation both with existing and new clients.  I am
delighted to report that we are seeing a high level of repeat business which
confirms the high regard in which the Group is now held.



'What has been achieved over the last four years is the result of the
dedication, hard work and enthusiasm of everyone at Costain and I thank them all
on your behalf.  Stuart Doughty, as Chief Executive, has been responsible for
leading the Group through its recovery and we have been extremely lucky to have
had him at the helm.  I am sure that everyone was delighted to hear of Stuart's
appointment as a Companion of the Order of St Michael and St George (CMG) in the
New Year Honours in recognition of his services to international trade and
investment.



'Under Stuart's leadership, a platform has been established from which the
Company can now move ahead into the next phase of its development.  To lead
Costain into that new phase, we were delighted to announce this week that Andrew
Wyllie, currently Managing Director of Taylor Woodrow Construction Limited, will
take over as Chief Executive later this year.  We have worked in joint venture
with Taylor Woodrow over a number of years and know Andrew well.  We are
delighted he has agreed to join us.  He shares our values and vision for the
future.



'I would like to place on the record our debt and gratitude to Stuart for the
great contribution he has made over the last four years and the role he has
played in ensuring that Costain has a secure future.



'Costain can be proud of its achievements over the last few years.  With a
restored pride, a strong brand and highly skilled teams led by outstanding
management, we are looking forward to the future with confidence.'





ENDS





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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