Agreement with Fugro NV

Costain Group PLC
25 April 2000


Costain Group PLC has reached agreement in principle with Fugro NV of
Leidschendam The Netherlands for the disposal to them, subject to contract, of
the Group's Foundation Engineering business.  Foundation Engineering operates
principally in the Middle East through its two offices in the United Arab
Emirates and its office in Oman.  The activities include onshore and nearshore
geotechnical investigations and material testing laboratories.  The annual
turnover of the business is approximately £2.5m.  This would be a Class 2
transaction under the rules of the London Stock Exchange.