Southern Water Contract

Costain Group PLC
07 May 2008



COSTAIN GROUP PLC
('Costain')



Costain secures 5-year extension of AMP4 contract with Southern Water through to
2015



Costain announces that the 4D consortium, in which it has a 40 per cent share,
has secured an extension to its current 5-year AMP4 contract with Southern
Water.  The extension will cover the period from 1 April 2010 through to 31
March 2015.



The other members of the consortium are United Utilities and Montgomery Watson
Harza.



The original contract commenced in 2005 with responsibility for managing part of
Southern Water's regulatory capital investment programme through to 2010.  The
value of that contract was approximately £700 million.



Full details of the 2010-15 contract cannot be finalised until the outcome of
the forthcoming price review is known.



Andrew Wyllie, Chief Executive of Costain, said:



'We are delighted to have been awarded the extension.  The award is the result
of excellent delivery to date by Costain and its partners on the original AMP4
contract.  We are particularly pleased to be gaining visibility on such an
important earnings stream for Costain this early in the contract renewal
process.'



                                                                      7 May 2008




ENQUIRIES:
Costain Group PLC                                             Tel: [phone]
Graham Read, Public Relations

College Hill                                                  Tel: [phone]
Mark Garraway
Adam Aljewicz




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