Re Contract

Costain Group PLC

("Costain" or "the Group")

Costain appointed to Southern Water AMP6 programme

Costain, the engineering solutions provider, is pleased to announce that it has been appointed by Southern Water to help deliver its 2015 - 2020 (AMP6) investment programme.

The work, which is being undertaken in a joint venture with MWH, is initially worth around £200 million over the five year period. There will also be the option to extend the framework beyond 2020 into AMP7 (2020 - 2025).

The appointment reinforces Costain's long-term collaboration with Southern Water, which provides 4.5 million people across the South East of England with water and wastewater services.

Costain will build on the major role it has played in delivering Southern Water's investment programmes over the past 14 years, with a strong focus on collaboration and innovation to deliver the services customers expect.

Andrew Wyllie, Chief Executive of Costain, commented:

"We are delighted to have been re-appointed to Southern Water's AMP framework and look forward to working with the Company and its other partners. We have a track record of working innovatively to provide solutions to complex and challenging customer requirements and we look forward to bringing this expertise to bear for the benefit of Southern Water and the communities it serves.

 "This is the third major contract Costain has secured in the AMP6 cycle, and provides further demonstration of our expertise in the water sector, as well as our ability to win contract extensions by entering into long term partnerships with blue chip customers."

Ends

12 September 2014

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