Greater Manchester Waste contract

Costain Group PLC("Costain" or the "Company")

Greater Manchester Waste contract

Costain, the engineering solutions provider, has noted the publication today of a decision notice by the Greater Manchester Waste Disposal Authority (the "Authority") following a meeting of the Authority on 26 April 2017. The decision notice, which relates to the Authority's PFI contract relating to recycling and waste management in Greater Manchester, states, amongst other things, as follows:

"That the Authority … confirmed that the Recycling & Waste Management Private Finance Initiative (PFI) Contract be terminated" and further that such contract "…would continue to be administered in accordance with its provisions during the termination notice period…".

Costain does not have a contract with the Authority but is a sub-contractor to Viridor Laing (Greater Manchester) Limited ("Viridor Laing") relating to recycling and waste management in Greater Manchester. Costain has not been party to any discussions between the Authority and Viridor Laing, but can confirm that discussions are taking place with Viridor Laing to consider the options in relation to Costain's sub-contract. A further announcement will be made when appropriate.

In the meantime, Costain is continuing to fulfil its obligations under the sub-contract.

It is Costain's policy not to pursue any further contracts of this nature.

This announcement contains inside information.

The person who arranged for the release of this announcement on behalf of Costain was Tracey Wood, Legal Director and Company Secretary.

02 May 2017

Enquiries:

Costain Group PLC Tel: 01628 842444Tracey Wood, Company Secretary