Contract award

Costain Group PLC
02 August 2007



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


Contract Award


Costain is pleased to announce that it has been awarded a contract by Rhondda
Cynon Taf County Borough Council to develop The Church Village by-pass in South
Wales.


Following the successful completion of the Porth Relief Road, Costain has been
appointed to the Early Contractor Involvement ('ECI') project after an extensive
tendering process involving five major civil engineering contractors over a
three month period. The ECI form of procurement will enable the scheme to be
delivered within 'best value' criteria as stipulated by the Council. The 2005
works cost estimate was approximately £76 million.


The appointment of a contractor is a major project milestone in meeting the
start on construction in the first half of 2008/09, fitting in with the Welsh
Assembly Government's Transport Grant Programme.


Andrew Wyllie, Chief Executive of Costain, commented:


'This is another good project win and an extension of our strong position in the
Highways sector. It also further demonstrates the benefits of developing strong
relationships with key clients, a core part of our Being Number One strategy.'



                                                                   2 August 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


                      This information is provided by RNS
            The company news service from the London Stock Exchange