Contract Award

Costain Group PLC
27 September 2007

COSTAIN GROUP PLC
('Costain')



Contract Award from United Utilities


Costain is pleased to announce that, in joint venture with VWS (UK) Limited,
part of Veolia Environnement, it has been awarded a contract by United Utilities
plc for the Mersey Valley Processing Centre, a major waste water and sludge
incineration scheme at Shell Green in Cheshire.

The 21/2 year contract, which is worth some £90m to the joint venture, is for
the design, procurement, construction and commissioning of a major facility and
incorporates process upgrades as well as incineration technology.

Commenting on the contract award, Andrew Wyllie, Chief Executive of Costain,
said:


'This contract is another example of the focused approach and benefits of our 
'Being No. 1 Strategy.'  The contract will further build on our position in the
UK water sector where we are one of the leading contractors and links directly
to our drive into the related waste sector'.



                                                               27 September 2007




ENQUIRIES:
Costain Group PLC                                Tel: [phone]
Graham Read, Public Relations

College Hill                                     Tel: [phone]
Mark Garraway
Matthew Gregorowski




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