Costain Regulatory News (COST)

COSTAIN GROUP PLC

("Costain")

Costain awarded airports contracts

Costain is pleased to announce it has been awarded two airport contracts. The first is an £18.6 million contract, as principal contractor, to refurbish Manchester Airport's main runway, Runway 1, under an existing Framework agreement.

The Runway 1 Project will continue through to September 2011 and the Airport will remain operational 24 hours a day during the runway closures period by utilising the 2nd runway.

Costain has also been appointed by BAA as one of the suppliers for the Local Project Integrator (LPI) at London Heathrow, the world's busiest international airport. The contract, which is anticipated to have a value of approximately £8 million per annum, will run for up to four years and will commence in March 2011. This award builds on the success of similar contracts at Gatwick and Manchester Airports and the early completion of a £25 million interchange for Gatwick.

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

"We are delighted to have been awarded these contracts for Manchester and London Heathrow airports. The contracts represent significant investment in the UK's infrastructure and will help the airports meet the growing needs of passengers in the future."

4 February 2011

Notes to Editors

Costain is one of the UK's leading construction and engineering companies and is currently at the forefront of the drive to develop and improve the nation's infrastructure.

In its targeted sectors, Costain is playing a major role in the provision of new facilities for a range of sectors ranging from waste to transport. The Company's strategy is entitled 'Choosing Costain' and everyone in the organisation is committed to making Costain the automatic choice in terms of both business and technical excellence.

Costain's origins date back to 1865. Since then the Company has featured in some of the world's major construction projects including the Channel Tunnel. Now the Company focuses on specific sectors within three divisions: Infrastructure - Highways, Rail, Airports and Nuclear sectors; Environment - Water, Waste, Marine and Education sectors; Energy & Process - Nuclear Process, Power and Hydrocarbons & Chemicals sectors.

Costain has a strong order book. Significant contract awards include the £397 million contract (design, construction and commissioning of 44 different facilities) for the Greater Manchester Waste Disposal Authority. In addition, Costain has won (as part of the 4D consortium) a £225 million contract with Southern Water to manage the design and build of a new waste water treatment works in the Brighton and Hove area. Costain is also heavily involved in the Nuclear sector and, in the Summer of 2009, announced the award of a £297 million contract for full Engineering, Procurement, Construction and Inactive Commissioning of the Evaporator D project at Sellafield.

The Company's status was underlined at the Construction News 2009 Quality Awards when Costain won the Supreme Award for best overall performance. More recently, the Company was named 'Contractor of the Decade' by New Civil Engineer at the magazine's annual awards in London in August 2010.