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AMEC grows environmental business with acquisition of UK Applied Environmental Research Centre

03 April 2007

London, United Kingdom (03 April 2007) - AMEC plc, the international project management and services company has further strengthened its environmental services capability with the acquisition of the UK-based Applied Environmental Research Centre (AERC) which generated revenues of £2.3 million in the year ended 31 December 2006. Its net assets were £0.6 million as at 31 December 2006.

"The environmental services market provides an important growth opportunity for AMEC, driven by ever more challenging legislation and increased pressure on industry to reduce its environmental impact", explains Jim Beechinor, Executive Vice President of AMEC Earth & Environmental. "For AMEC, the ability to provide value adding consultancy services at an early stage in a project's life is essential as it enables us to provide our clients with a comprehensive service from the earliest feasibility stages through to design, delivery and operation."

The acquisition will significantly strengthen AMEC Earth & Environmental's position in the UK environmental market where it is fast becoming one of the top environmental consultancies with a balanced portfolio of regional, national and international activity for private and public sector customers.

AERC is a specialist consultancy employing 45 scientists and engineers, based in Colchester, Essex. It provides a wide range of services across the environmental sciences, engineering and planning, including environmental monitoring and measurement.

Susan Gregson, director of AERC, welcomes the acquisition and said: "These are very exciting times for AERC; joining AMEC offers a tremendous opportunity for us to develop, both as a business and as individuals within the greater AMEC. We now look forward to joining new colleagues in the UK Earth & Environmental business to develop and grow AMEC's position in this market. We also look forward to using our expertise to support other AMEC businesses and help provide a 'one company' solution to new and existing clients."

AERC is also one of the top waste management consultancies in the UK and has a strong focus in the landfill sector where it provides a full range of services spanning: feasibility studies; planning applications; Environmental Impact Assessments; environmental monitoring; contaminated land site screening and prioritisation; remediation designs; geotechnical investigations; OCNS and REACH product testing and registration; environmental auditing; licensing and permitting; engineering design; and gas and leachate management.

Bob Bell, AMEC Earth & Environmental's director responsible for the acquisition says: "AERC fits with our UK strategy of serving local clients, providing front-end services to other AMEC divisions, and using in-country resource to service our international client base. The business will also boost our critical mass in the UK and strengthen our position in the waste industry where there is considerable demand for environmental expertise as the country's landfill capacity declines and industry searches for new waste disposal options."

AERC has developed HaloTech, a wetland wastewater treatment system which is in the final stages of being trademarked. Developed through extensive trials over a four year period the research culminated in the construction of a full scale treatment bed for a site in the south west of England during 2006. The Environment Agency has acknowledged the HaloTech treatment plant to be the most sustainable long-term treatment technology for leachate management at this site. A second treatment plant is to be constructed at a site in Kent during 2007.

AERC's activity spans a wide variety of clients and markets. For example it is currently undertaking a green belt review for Cheltenham Borough Council and representing Guildford Borough Council at public hearings into Surrey County Council's new Waste Development Plan Documents. It is managing environmental surveys in connection with the proposed regeneration of Southend Pier and it is reviewing operations and operational risk at facilities across the country for a leading UK waste disposal company. It is carrying out a wide range of desk study and contaminated land investigations across the south and south west of England. It is even working for a landfill operator in Lebanon carrying out a hydrogeological risk assessment.

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