Re Contract

Costain Group PLC

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

Costain Joint Venture awarded extension to highway maintenance contract

Costain, one of the UK's leading tier one engineering solutions providers, has, through its A-one+ joint venture with Halcrow and Colas, been awarded a two-year extension to its five-year Managing Agent Contractor ('MAC') contract, by the Highways Agency ('HA').

Under the contract, A-One+ will carry out a range of operational and routine maintenance services and deliver improvements on the motorways and trunk roads in the East Midlands (MAC Area 7). This covers the counties of Derbyshire, Leicestershire, Lincolnshire, Northamptonshire, Nottinghamshire and Rutland. The HA has already worked with A-one+ to deliver substantial savings as part of the retrofit of Asset Support Contract conditions to existing MAC contracts. The extension will enable the HA to develop and test new approaches to achieving even greater efficiencies.

The contract extension is forecast to be worth circa £60m per annum and will extend the current contract to June 2016.

Andrew Wyllie, Chief Executive of Costain, commented,

"This significant contract extension demonstrates, we believe, the successful implementation of our 'Choosing Costain' strategy in which we focus on building long term relationships with and winning repeat work from blue chip customers who are spending billions on meeting vital infrastructure needs. This contract further contributes to the strength of our order book, which comprises approximately 90% repeat business."

11 April 2013

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