Immediate Release July 19th 1996

Press Release

Shareholders demand Alan Lovell's resignation


The Costain Independent Shareholders Association, a group representing small independent investors, is calling for the immediate resignation of Costain's Chief Executive, Alan Lovell. The Association believes that Alan Lovell is unfit to lead the Costain group out of the financial crises which he himself created.

The Association is looking to Costain's majority shareholders Mohammed Abdulmohsin Kharafi and Sons and Raymond International, who have a combined thirty eight percent share holding of Costain for their support. An alternative package of financial measures based on a three month moratorium and bank underpinning is being proposed by these Middle Eastern majority shareholders, and has the support of the Costain Independent Shareholders Association.

Association members will be attending the Extraordinary General Meeting and distributing an open letter encouraging other shareholders to join them in calling for Alan Lovell's resignation.

Mr Alisdair Stark, Chairman Costain Independent Shareholders Association said

"Costain has crumbled under Alan Lovell's guiding hand. Lovell has threatened shareholders with receivership if his plan is not accepted. Lovell must be removed if Costain is to have a future. Costain desires better than a rescue by a Intria, manufacturer of fatty acids and glycerine. We look to our Middle Eastern allies, Kharafi and Raymond for support and a new rescue package for Costain" Mr Akmed Samy, Mohammed Abdulmohsin Kharafi's and Sons Investment Officer said "We are extremely unhappy with the proposals [Lovell's] because they do not reflect the full value of the group and are not in the shareholders' best interests"[1] ENDS

Editors Notes

[1] The Times, Thursday July 18th 1996

Further information: Chairman Costain Independent Shareholders Association,