Further Planning Approval

Costain Group PLC
20 November 2002


                               COSTAIN GROUP PLC

        FURTHER PLANNING APPROVAL OBTAINED FOR ALCAIDESA, SOUTHERN SPAIN


Costain Group PLC (the 'Company') announces that Alcaidesa Inmobiliaria SA (a
subsidiary of Alcaidesa Holding SA which is jointly owned by the Company and its
long term joint venture partner Banco Espanol de Credito SA) have been granted
definitive planning approval to its Master Plan Development Proposals for the
186 hectare land enclave known as San Roque I and II, Alcaidesa, Southern Spain.
The consent will permit the construction of three Hotels, a second golf course
with new clubhouse facilities and 1,750 homes.  Infrastructure work will
commence early in 2003 and a number of forward land sales have been agreed and
will be completed shortly.


                                                                20 November 2002


Enquiries:

Costain Group PLC                                   Tel: [phone]
Stuart J Doughty           Chief Executive
Charles J McCole           Finance Director
Graham Read                Public Relations

College Hill                                        Tel: [phone]
Mark Garraway


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