Trading Statement

RNS Number:2428U
Costain Group PLC
15 January 2004



                               Costain Group PLC

                                 Trading Update

Costain PLC ("Costain" or "the Group") will be releasing preliminary results for
the year ended 31st December 2003 on Wednesday 17th March 2004 and expects to
announce results in-line with expectations.

The Group is now focused in the areas of water, transport and healthcare.
Significant progress has been, and continues to be, made in developing closer
relationships with key clients. This will benefit trading prospects in 2004.
Some recent examples of this focus included the Ministry of Defence's Project
Aquatrine and a major British Gas project.

Costain, as part of the C2C Consortium including Severn Trent and Arup, was
announced preferred bidder on the Aquatrine package C project in November. The
25 year contract will involve the delivery of water and wastewater services to
approximately 1,500 MoD sites throughout the Southeast, East and North of
England and is worth approximately #1 billion in revenues to the Consortium. The
contract, which is scheduled to start this year, further reinforces Costain's
dominance in the utilities sector.

Costain, as joint venture partner in Costain Petrofac Limited (CPL) was awarded
a seven year contract, also in November, to provide a wide range of engineering,
construction and project support (ECAPS) services to British Gas Hydrocarbon
Resources Limited's (HRL) Morecambe Bay Asset. Already underway, the contract's
seven year term plus the option to extend to twelve years, by five - one year
extension periods, will provide the opportunity for CPL to develop a long and
rewarding relationship with HRL.

Commenting on 2003, Chief Executive, Stuart Doughty said:

"2003 has been a good year for Costain. We completed our recovery process and
saw continued progress in improving UK operating margins. As the year drew to a
close, we were particularly delighted to secure masterplan approval from our
Spanish Property Development Joint Venture activity, Alcaidesa, thus delivering
the original commitments made at the beginning of 2003. The prospects for the
Group are good and recent contract wins will strengthen future earnings."

                                                                 15 January 2004

Enquiries:

Costain Group PLC Tel:                         01628 842444
Stuart Doughty, Chief Executive
Charles McCole, Finance Director

College Hill Tel.                              020 7457 2020
Mark Garraway
Matthew Gregorowski



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

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