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Aecon joint venture awarded $69 million tunnel project in York Region

Sep 19, 2006

Toronto, Ontario – September 19, 2006: Aecon Group Inc. (TSX: ARE) announced today that a joint venture in which it is a partner has been awarded a $69.2 million contract to construct a trunk sewer tunnel by the Regional Municipality of York.

The project involves the construction and commissioning of approx. 4.3 km of trunk sewer tunnel along 19th Avenue starting at Yonge Street. The primary section of tunnel is approximately 4.1 km in length with a minimum diameter of 2.1 metres.

Construction of the sewer will involve Earth Pressure Balance (EPB) tunneling technology, which is designed to limit dewatering during construction. Construction will begin immediately and is scheduled to be concluded in January of 2008.

The joint venture awarded the project is owned 70% by McNally International Inc. of Hamilton and 30% by Aecon.

“This contract continues Aecon's successful partnership with McNally International in serving York Region's tunnel construction needs,” said Don Brophy, Vice President of Aecon Constructors. “We are pleased to bring our expertise in tunnel construction to this project.”

The project will bring our work with McNally International to nearly 30 km of tunnel construction since Aecon and McNally began building tunnels for the Region in 2001, including the Bathurst Langstaff, 16th Avenue, and 9th Line tunnel projects.

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.