NHS Estates Principal Partner

Costain Group PLC
18 September 2003



                                COSTAIN GROUP PLC
                            ('Costain' or the 'Group')


  Principal Supply Chain Partner for NHS Estates Procure 21 national roll-out


Costain is pleased to announce that ACM Health Solutions, its joint partnership
with AMEC and Mowlem, has been selected by NHS Estates as Principal Supply Chain
Partner for the national NHS ProCure 21 framework agreement.


The decision to implement ProCure 21 on a national basis follows the success of
the initial pilot scheme in the North-West and Midlands, in which Costain is
already responsible for several ProCure 21 projects, including the Ormskirk
Hospital in Southport.


NHS Estates has announced a total of 12 Principal Supply Chain Partners for the
national programme, estimated to be worth £7 billion over a five year period,
and covering a wide variety of projects including new hospitals and provision of
additional facilities at existing accommodation.


Peter Woolliscroft, Head of Construction at NHS Estates and Project Director for
NHS ProCure 21 said:


'By working together with the NHS and the private sector, we have been able to
show that the NHS can achieve the types of benefits we have seen the private
sector secure - time, value, predictability and a greater understanding of the
NHS's needs. Patients, staff and the NHS as a whole will now be able to obtain
the benefits that the pilots have demonstrated.'


Chris Strong, ACM Health Solutions General Manager, said:


'ACM has the resource and experience which one would expect from three of the
UK's leading companies. In addition, Costain has played a leading role in the
local ProCure 21 programme and we will capitalise on that vital experience in
the future.


'We look forward to continue working with NHS Estates and ensuring ACM provides
a first-class service throughout the programme.'


                                                               18 September 2003

ENQUIRIES:

Costain Group PLC                                 Tel: [phone]
Stuart Doughty, Chief Executive
Graham Read, Public Relations

College Hill                                      Tel: [phone]
Mark Garraway
Matthew Gregorowski






                      This information is provided by RNS
            The company news service from the London Stock Exchange