Contract Award

Costain Group PLC
10 January 2005



Costain Group PLC

('Costain' or the 'Group')



MAJOR PROJECT AWARD FOR CHINA HARBOUR-COSTAIN



China Harbour-Costain*, an international 50-50 joint venture, has been awarded a
$170 million contract by Sempra LNG's Energia Costa Azul to design and construct
the breakwater for a liquefied natural gas (LNG) receipt terminal at Baja
California in Mexico.



The 600m breakwater will serve to protect the receipt terminal's LNG off-loading
jetty.



Commencing in January 2005 and lasting 35 months, construction of the breakwater
will involve towing pre-cast concrete caissons which will then be sunk to sit on
a prepared granular bed.  In all, there will be 16 caissons, each being 36m in
length, 26m high and weighing about 9000 tonnes.  There will also be 14,140
pre-cast concrete armour blocks weighing up to 43 tonnes each, with rock/
granular material of some 930,000 tonnes.  At the peak of construction 800-1,000
workers could be on site.  The hiring of local, qualified workers will be a
priority.



'This is a significant contract award for the China Harbour-Costain joint
venture,' said Stuart Doughty, Costain Chief Executive.  'We have a formidable
combination of expertise and experience and we are delighted to be involved in
such a prestigious global project.



'It is testament to the strength of the joint-venture team that the China
Harbour-Costain construction methodology was judged by the client as the best
technical and environmental solution.  We defeated strong competition from
countries such as the USA, France and Italy and have now established China
Harbour-Costain as a considerable force in the international market.'



                                                                 10 January 2005



Enquiries:

Costain Group PLC                                  Tel: [phone]

    Stuart Doughty, Chief Executive
    Charles McCole, Finance Director
    Graham Read, Public Relations

College Hill                                       Tel: [phone]

    Mark Garraway
    Matthew Gregorowski










* Note to Editors; China Harbour (CHEC), one of China's largest construction
groups and Costain Group PLC, the international construction and civil
engineering company, formed a global alliance in 2004 to pursue opportunities in
international markets, specifically in the area of marine development and port
construction.



The complementary skills base of the CHEC and Costain Joint Venture makes it a
global leader in marine works.  CHEC has one of the largest marine fleets in the
world, whilst Costain has an international brand with high calibre civil
engineering experience and a global reputation for quality.








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