Costain Regulatory News (COST)

Further to the announcement made by Mouchel on 29 March 2011 that the Board had decided that it is not in shareholders interests to proceed with any further discussions with Interserve plc ("Interserve) or Costain Group plc ("Costain") and the subsequent announcements made by Interserve on 29 March 2011 and Costain earlier today that neither party intends to make an offer for Mouchel, the Board confirms that it is no longer in discussions with any party regarding a potential offer for the Company and has received confirmations from each party it was in discussions with that they are no longer considering an offer for the Company. Accordingly the Company no longer remains in an offer period for the purpose of The Takeover Code.

As announced on 29 March 2011, the Board of Mouchel having consulted with shareholders (who, in total represent over 50 per cent. of Mouchel's issued share capital), considered that Costain's proposal had an unacceptably high level of execution risk to warrant further discussions. This view is unchanged. The Board's priority remains to enhance shareholder value, and we remain confident in Mouchel's prospects as an independent business.

Richard Cuthbert, Chief Executive of Mouchel Group plc, commented:

"I'm delighted that, after a prolonged period of uncertainty and disruption, we can now focus on our clients and our business. In an environment where all of our clients are facing the challenge of delivering higher quality services more efficiently, it is clear that our skills will be increasingly in demand and this underpins our positive long term outlook."

Contacts:

Mouchel Group plc: +44 (0) 1483 731 731

Richard Cuthbert, Chief Executive

David Tilston, Group Finance Director

Finsbury +44 (0) 207 251 3801

Faeth Birch

Andrew Dowler

Charles Watenphul