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IST secures two contracts in Spain totalling $35 million

Feb 8, 2007

Toronto, Ontario –February 8, 2007: Aecon Group Inc. (TSX: ARE) today announced that its wholly-owned subsidiary, Innovative Steam Technologies (IST), has been awarded two contracts totalling $35 million to supply its Once-Through Steam Generator (OTSG) units to two clients in Spain.

Under the first contract, awarded by the engineering and construction firm Tecnicas Reunidas S.A., IST will supply four OTSG units designed to recover waste exhaust heat from four LM6000 45MW gas turbines and use that heat to create steam for a steam turbine. The OTSG units will be installed as part of the first combined cycle peaking plant in Spain owned by Global 3 Energia. Fabrication of the boilers at IST's Cambridge facility began in 2006, with delivery planned for December 2007.

In the second contract, awarded by Papelera Guipuzcoana De Zicunaga S.A., IST will supply and install one OTSG unit on an LM6000 45MW gas turbine, and will include a fresh air firing system that supplies backup waste heat. This is IST's first unit with an auxiliary system that enables the boiler to continue producing steam during a gas turbine outage. The unit will be delivered to the site in September 2007 with installation completed in the fourth quarter of 2007.

“We are extremely pleased to receive these two orders in the growing power generation market in Spain,” said Bob Dautovich, President of IST. “These orders further demonstrate our commitment to the European market and the acceptance of our superior technology.”

These contracts bring IST's total sale of OTSG units to 112 units in 14 countries world-wide. OTSG technology improves the efficiency of its customers' power plants and is better for the environment compared to many power generation sources.

Innovative Steam Technologies is the world leader in the design and fabrication of once-through-steam-generators and is a wholly owned division of Aecon Group Inc. Aecon 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.