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Aecon to redeem 8.25% Debentures

Oct 2, 2007

Toronto, Ontario – October 2, 2007: 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 November 2, 2009 (the “2009 Debentures”). Effective November 2, 2007, all 2009 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 September 30, 2007, an aggregate of approximately $30.9 million was owing on account of principal and accrued interest under the 2009 Debentures. However, until redeemed, the 2009 Debentures will remain convertible at the option of the holders to acquire Aecon common shares at a conversion price of $7.50 per share at any time on or prior to the close of business on November 1, 2007. In light of the current trading price of Aecon’s common shares, it is anticipated that most, if not all, of the 2009 Debentures will be converted, in which case up to an additional 4 million 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 million over the next two years, in turn increasing Aecon’s profitability and significantly mitigating the dilutive effect of the conversions,” Mr. Balfour said.

The redemption of the 2009 Debentures will not affect Aecon’s 8.25% subordinated convertible debentures due March 17, 2010, which cannot be redeemed by Aecon prior to March 17, 2008.

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. The Company's shares are listed for trading on the Toronto Stock Exchange under the symbol ARE.