Disposal Completed

Costain Group PLC
5 June 2000


                       SALE OF GEOTECHNICAL SERVICES DIVISION

On 31 May 2000, Costain Group PLC completed the sale to the Fugro Group of the
overseas division of its Geotechnical Services business in line with the Group's
strategy of disposing of non-core businesses.  The transaction comprised the
sale of the assets and liabilities of the geotechnical businesses held by
Costain Dubai LLC, Costain Abu Dhabi Co. WLL, Yahya Costain LLC and the sale of
the shares of Foundation Engineering Limited.  The total consideration is £2.9
million, subject to a completion adjustment in respect of the debtors, creditors
and work in progress sold, and is payable in cash.  In addition, Costain Group
PLC has retained certain debtors and creditors with a book value of £0.5
million.

The business sold carried out geotechnical contracting, such as thrust boring,
grouting and rock anchoring, and consultancy work, including the undertaking of
onshore and offshore site investigations.

Costain was paid 90% of the consideration on completion.  A further 5% will be
payable when the completion accounts are agreed and the final 5% on 31 December
2000.  The proceeds will be used to reduce bank debt.

At 31 December 1999, the geotechnical businesses had net assets in Dubai, Abu
Dhabi and Oman of £0.8 million.  It made a profit before tax in the year to 31
December 1999 of £0.2 million on turnover of £2.5 million.

The geotechnical contracting and consultancy business in the UK, which Costain
continues to operate is unaffected by the Middle East sale.