First Midlands Contract

Costain Group PLC
30 September 2002




                             COSTAIN GROUP PLC

             COSTAIN WINS FIRST CONTRACT IN THE MIDLANDS


Costain, which earlier this year established a regional office in the Midlands,
located at the Birmingham Business Park, has won a £13 million contract to
construct new facilities at the Royal Shrewsbury Hospital.


The development, which will be completed in 16 months, includes a 32 bed medical
assessment unit, 36 bed elderly care and rehabilitation unit, pre-operative
assessment clinic, MRI scanner imaging department and clinical office
accommodation.


Costain, with a pedigree stretching back to 1865, is one of the UK's best-known
building and engineering companies. In the autumn 2001, the company announced an
aggressive growth strategy that included launching a new Midlands business.


Tom Caulcott, Chairman of the Royal Shrewsbury Hospital, said:


'We are delighted that a company with the expertise and track record of Costain
has secured this contract. This project represents the most important investment
in Shropshire this decade. We look forward to working with Costain to produce a
facility of which we can all be proud.'


Costain director, Mike Thompson, said:


'We've only been in our new home for a few months and to have already won such
an important contract is testimony to the reputation that Costain has both
across the industry and in the sectors in which we intend to be a force.'





                                                               30 September 2002


Enquiries:

Costain                              Tel. [phone]
Graham Read


College Hill                         Tel. [phone]
Mark Garraway


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