Aecon Group Inc.
TSX : ARE

Aecon Group Inc.

July 17, 2008 06:30 ET

Aecon Industrial Signs Alliance Agreement With Union Gas

TORONTO, ONTARIO--(Marketwire - July 17, 2008) -

Attention Business Editors:

Aecon Group Inc. (TSX:ARE) announced today that its Industrial Division has entered into a multi-year alliance agreement with Union Gas Limited to perform all of Union Gas' compressor station construction and upgrading work across Ontario.

While the agreement includes no stipulated or estimated amount of work to be performed, Aecon has undertaken approximately $90 million in compressor station work for Union Gas over the past three years in a series of individual contracts.

Under the alliance agreement, Aecon and Union Gas are creating a mutually beneficial, team-oriented relationship to ensure cost control and efficient project management, while maintaining a focus on safety, quality and reliability on a variety of projects.

The agreement will ensure the availability of Aecon's expertise and resources for projects with Union Gas, and will also deliver cost efficiencies and opportunities for continuous improvement. The scope of the agreement includes both current and future natural gas compressor projects, and may also include other station projects as appropriate.

Aecon also has a long standing alliance agreement with Union Gas through its Infrastructure division. Aecon Infrastructure installs mains, service lines and distribution system pipelines, performs engineering pipeline project work, assists with integrity and maintenance of Union Gas' distribution pipeline infrastructure, and installs standard distribution stations.

As well, Aecon Buildings is currently completing an office building for Union Gas, and will be constructing two additional buildings for the company in 2008/2009 - all three buildings are expected to achieve LEED (Leadership in Energy and Environmental Design) Gold certification. In addition, Aecon Buildings will complete Tennant Improvement renovations to various sites across the Union Gas Portfolio.

"Aecon has always been very proud of our long-standing relationship with Union Gas," said Jake Berg, President of Aecon's Industrial Central Canada Division. "The signing of this new alliance agreement is a progressive way for both Union Gas and Aecon to effectively manage construction resource requirements in an environment that is becoming increasingly resource - constrained."

Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and internationally. Aecon is pleased to be recognized as one of the 50 Best Employers in Canada as published by Report on Business Magazine.

The information in this news release includes certain forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties which are discussed in greater detail in the section entitled "Risk Factors and Uncertainties" in Management's Discussion and Analysis of operating results and Financial Condition for the year ended December 31, 2007 filed on SEDAR at www.sedar.com. Although Aecon believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct.

Contact Information