Costain Regulatory News (COST)

COSTAIN GROUP PLC

("Costain")

Costain to build new bridge across the River Thames

Costain is pleased to announce that it has received the go-ahead from Surrey County Council to construct the new Walton bridge as part of a £32.3 million scheme, creating the first major road crossing over the River Thames in almost 20 years.

The crossing, between Walton and Shepperton, is due to be completed by 2013 and will replace two temporary bridges in the area. The bridge will provide improved access to several schools, major employers and shopping centres.

Around 34,000 vehicles use the current road bridge on week days.

The government has agreed to contribute just under £23.9 million to the project with the council providing a further £8.5 million, which has already been budgeted for.

Andrew Wyllie, Chief Executive of Costain, said:

"We are delighted to be awarded this contract by Surrey County Council, which is the first road crossing over the River Thames to be built in 20 years."

17 January 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.