Costain Group - September 2007

Costain announced a 3 for 4 rights issue to raise approximately £60mlion (net of expenses) at 24 pence per share. The issue is co-underwritten by Arbuthnot and Dresdner Kleinwort and is supported by the Group's two major shareholders who own 57% of the shares. Shareholders will vote on the transaction on 2 October 2007 and dealings in new ordinary shares are expected to begin on 26 October 2007.

A refinancing exercise was carried out in parallel and resulted in the Group increasing its bilateral bonding, cash advances and overdraft facilities from banks and surety providers to £200mlion from c. £140mlion.

Canaccord Genuity acted as financial advisor and sponsor to Costain.