RNS Number:4995L
Costain Group PLC
23 May 2003



                                COSTAIN GROUP PLC

                             Annual General Meeting



At the Annual General Meeting held today, the Chairman, David Jefferies, made
the following comments:

"The Costain strategy, launched some 18 months ago, underlined our intention for
the Company to grow in terms of turnover and profit and also to target specific
sectors of work.  We were determined to move away from one-off high-risk
projects and focus on longer-term business relationships which would introduce
greater stability and profitability.  I am delighted to say these objectives are
being achieved.

"Our Asset Management operation in the water sector continues to gather momentum
and we now have 15% of the total UK market.  We are currently involved in talks
with clients as the next round of their negotiations with the Water Regulator on
capital programmes - entitled AMP 4.

"You will have read about the Government's pledge to improve this country's
healthcare.  The capital investment in the health sector is set to rise from
#2.3 billion in 2002 / 2003 to over #6 billion in 2007 / 08.  The Government has
committed itself to delivering 500 one-stop primary care centres and 100 new
hospitals by 2010.  There is a major requirement for construction skills coupled
with an understanding of the client's needs.  We are one of the five principal
supply chain partners on the NHS's ProCure 21 pilot project operating in the
North-West and Midlands and we have recently joined with AMEC and Mowlem to form
a powerful joint-venture to bid for work when the ProCure 21 project is rolled
out on a national basis.  In addition, we have been named as part of a
consortium which has achieved preferred bidder status for the Kingston Hospital
PFI project.

"The Government has also pledged to improve UK transport infrastructure.  Again
Costain is at the forefront.  We are involved in #700 million of capital rail
work and the Government has allocated #22 billion on strategic road projects -
one of which, the A303, has already been awarded to Costain and Balfour Beatty
as the joint venture contractors.

"In international markets the Costain brand is still very strong.  With the
support of our major shareholders, we are focusing our efforts on opportunities
in markets where previous joint venture partners have indicated their wish to
work with us.  We are also pleased to report that our joint venture in Spain at
Alcaidesa continues to make excellent progress.

"Your Board is confident that the Group has been refocused to capture the
opportunities that exist in the markets in which we operate and that our staff
have the skills and commitment to supply results which will deliver value for
shareholders."

                                                                     23 May 2003


ENQUIRIES:

Costain Group PLC                                           Tel: 01628 842444
Stuart Doughty, Chief Executive
Graham Read, Public Relations

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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