Financial Close

Costain Group PLC
14 December 2007

Costain Group PLC

('Costain' or the 'Group')



Financial Close on Lewisham BSF

Costain is pleased to announce that its joint venture with VT Group 
('Learning21') has reached financial close on a partnership agreement with the 
London Borough of Lewisham ('Lewisham') to deliver enhanced education services
over the next 25 years.  This is part of the Government's Building Schools for
the Future ('BSF') programme.


This partnership agreement includes an initial PFI contract, with a £56 million
capital value to Costain, to design and build two secondary schools at Sedgehill
and Catford, where construction is already underway. Associated ICT and
facilities management services will be carried out by VT Group.


Costain and VT Group will each invest 40% in the PFI special purpose vehicle
with Lewisham and Building Schools for the Future Investments together taking
the remaining stake.


Under the partnership agreement, Costain will then negotiate future phases for
the design and build of a further seven secondary schools and three special
needs schools.  The total anticipated capital value of these works is £210
million, of which 50% will be procured under PFI.


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


'We are pleased to have reached financial close on this prestigious BSF project,
on which we are already very active.  Along with our other major BSF project, in
Bradford, where we are on site with three new secondary schools worth over
£70m, this strengthens Costain's position in this key sector.'



14 December 2007




Enquiries:

Costain                                                      Tel: [phone]
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Public Relations

College Hill                                                 Tel: [phone]
Mark Garraway
Matthew Gregorowski




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