July 17, 2008

Aecon Industrial signs alliance agreement with Union Gas

Aecon Group Inc. (TSX: ARE) announced July 17, 2008 that its Industrial Division has signed a multi-year alliance agreement with Union Gas Limited to perform all of Union Gas’ compressor station construction and upgrading work across Ontario.

Aecon’s Infrastructure division already has a long-standing alliance agreement with Union Gas.

While the new 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.

The alliance agreement is intended to ensure cost control and efficient project management. The scope of the agreement includes both current and future natural gas compressor projects, and may also include other station projects as appropriate.

“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,” says Jake Berg, President of Aecon’s Industrial Central Canada Division.

Aecon Buildings is currently completing an office building for Union Gas, and will be constructing two additional buildings for the company in 2008-2009.

– RCD Digital Media

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