Re Contract

Costain Group PLC

("Costain" or "the Group")

Costain appointed to Severn Trent AMP6 programme

Costain, one of the UK's leading engineering solutions providers, is pleased to announce that it has been appointed by Severn Trent Water ('Severn Trent') to its 2015 - 2020 investment programme ('AMP6' - Asset Management Period number six). The appointment marks confirmation of a continuation of Costain's involvement in Severn Trent's AMP5 programme through to AMP6, and is worth approximately £250m to the Group.

Under the terms of the framework contract, Costain will work to deliver Severn Trent's capital programme of essential upgrades to water infrastructure networks and wastewater treatment facilities for more than 4.2 million households and businesses in the Midlands and mid-Wales.

Andrew Wyllie, Chief Executive of Costain, commented:

"We are delighted to have been appointed by Severn Trent to deliver this major AMP6 contract, in a continuation of the work we are undertaking on AMP5.

"This is a consequence of our strategic focus on building long term relationships with major blue chip customers who are committing significant investment to meet urgent national needs, like the securing of the UK's water supply. The long-term visibility of our order book, which comprises over 90% repeat orders, is the direct result of this strategy."

Ends

9 December 2013

Enquiries: