Aecon Group Inc.
TSX : ARE

Aecon Group Inc.

February 15, 2008 14:10 ET

Aecon to redeem 8.25% Debentures due March 17, 2010

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Attention Business Editors:

Aecon Group Inc. ("Aecon") (TSX:ARE) announced today that it intends to redeem, in accordance with their terms, all of its 8.25% subordinated convertible debentures due March 17, 2010 (the "2010 Debentures"). Effective March 18, 2008, all 2010 Debentures which are then outstanding will be redeemed at a redemption price equal to their principal amount plus all accrued and unpaid interest to but not including the redemption date.

As of January 31, 2008 an aggregate of approximately $32.7 million was owing on account of principal and accrued interest under the 2010 Debentures. However, until redeemed, the 2010 Debentures will remain convertible at the option of the holders to acquire Aecon common shares at a conversion price of$7.60 per share at any time on or prior to the close of business on March 17,2008. In light of the current trading price of Aecon's common shares, it is anticipated that most, if not all, of the 2010 Debentures will be converted, in which case up to an additional 4,173,421 common shares of Aecon will be issued.

"The capital raised through the issuance of these debentures was an important part of Aecon's turnaround over the past couple of years," said Scott Balfour, President and CFO, Aecon Group Inc. "In fact, the continuing improvement in our financial results, along with our healthy balance sheet and solid cash position, mean that Aecon no longer needs to carry the debt associated with these debentures."

"The anticipated conversion of the debentures will reduce interest costs by about $6.7 million over the next two years, in turn increasing Aecon's profitability and significantly mitigating the dilutive effect of the conversions," Mr. Balfour said.

Aecon previously redeemed on November 2, 2007 the balance outstanding of its $30,000,000 aggregate principal amount of 8.25% subordinated convertible debentures due November 2, 2009 that had not been converted by the holders thereof into common shares of Aecon prior to November 2, 2007.

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 generally described in Section 3.2 "Risk Factors" of Aecon's Annual Information Form available 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.

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