Consortium Signs PFI Deal

Costain Group PLC
26 January 2004


                               Costain Group PLC

                      COSTAIN CONSORTIUM SIGNS PFI DEAL FOR

                          KEY ROAD SCHEME IN SOUTH WALES

Sirhowy Enterprise Way Ltd, a consortium made up of Costain Engineering &
Construction Ltd, a division of Costain Group PLC and Laing Roads, a division of
John Laing Plc, has signed a £38 million pound agreement with Caerphilly County
Borough Council to build and improve roads in the heart of the Sirhowy Valley.
Costain and Laing have an equal share in the consortium.

The 30 year concession covers the design, build, finance and operation of
improvements to the A4048/A472 strategic highway network between the north of
Blackwood and the east of Pontllanfraith, as well as providing a new direct
access route to Oakdale Business Park. The total carriageway length is 4.3km and
includes a landmark cable-stayed bridge. Construction is due to finish in April
2006.

Commenting on the agreement, Alistair Handford, Costain PFI Director, said:

'Costain is delighted to be involved in this highly significant public / private
partnership.   This project will bring investment and opportunity to South Wales
and will greatly improve the area's transport infrastructure.'


                                                                 26 January 2004

Enquiries:

Costain Group PLC                                      Tel: [phone]
Stuart Doughty, Chief Executive
Charles McCole, Finance Director

College Hill                                           Tel. [phone]
Mark Garraway


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