SNC-LAVALIN ANNOUNCES ITS FIRST QUARTER RESULTS FOR 2011

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                                 Highlights

    - The Company's financial statements have been prepared in accordance
      with International Financial Reporting Standards ("IFRS"), all 2010
      comparative figures have been restated.
    - Net income attributable to the Company's shareholders for the first
      quarter of 2011 was $73.9 million ($0.49 per share on a diluted basis),
      compared to $84.1 million ($0.55 per share on a diluted basis) for the
      first quarter of 2010.
    - Net income excluding Infrastructure Concession Investments was $49.5
      million for the first quarter of 2011 compared to $64.6 million for the
      corresponding period in 2010. SNC-Lavalin's net income from
      Infrastructure Concession Investments was $24.4 million for the first
      quarter of 2011 compared to $19.5 million for the first quarter of
      2010.
    - Revenues for the first quarter of 2011 increased by 25.1% to $1.6
      billion, compared to $1.3 billion for the same period in 2010.
    - Revenue backlog totalled $9.4 billion at the end of March 2011 compared
      to $9.7 billion at the end of December 2010 and $8.6 billion at the end
      of March 2010. Note that due to the adoption of IFRS, and particularly
      its impact on infrastructure concession investments, the Company no
      longer includes its Infrastructure Concession Investments revenue
      backlog.
    - Financial position remained strong with cash and cash equivalents of
      $1.2 billion at March 31, 2011.
    - Return on average shareholders' equity was 27.3% for the 12-month
      period ended March 31, 2011.
    - The Board of Directors declared a cash dividend of $0.21 per share for
      the first quarter of 2011.
    >>

MONTREAL, May 5 2011 /CNW Telbec/ -

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    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                                                              First quarter
    (in thousands of Canadian dollars,             --------------------------
     unless otherwise indicated)                          2011          2010
    -----------------------------------------------------------  ------------

    Revenues by activity
      Services                                     $   480,153   $   457,256
      Packages                                         632,068       384,081
      Operations and Maintenance                       426,767       383,072
      Infrastructure Concession Investments (ICI)      101,771        86,916
                                                   ------------  ------------
                                                   $ 1,640,759   $ 1,311,325
                                                   ------------  ------------
                                                   ------------  ------------

    Net income excluding ICI                       $    49,501   $    64,620
    SNC-Lavalin's net income from ICI                   24,379        19,511
                                                   ------------  ------------
    Net income attributable to the Company's
     shareholders                                       73,880        84,131
    Net income attributable to non-controlling
     interests                                           2,746         2,602
                                                   ------------  ------------
    Net income                                     $    76,626   $    86,733
                                                   ------------  ------------
                                                   ------------  ------------

    Diluted earnings per share ($)                 $      0.49   $      0.55
                                                   ------------  ------------
                                                   ------------  ------------

    Shares outstanding (in thousands)
      Weighted average number of outstanding
       shares - Basic                                  150,952       150,992
                                                   ------------  ------------
                                                   ------------  ------------
      Weighted average number of outstanding
       shares - Diluted                                152,295       152,371
                                                   ------------  ------------
                                                   ------------  ------------

    Return on average shareholders' equity
     (ROASE) (1)                                          27.3%         27.2%
                                                   ------------  ------------
                                                   ------------  ------------

                                                       As at         As at
                                                     March 31     December 31
    Revenue backlog by activity                        2011           2010
                                                   ------------  ------------
      Services                                     $ 1,396,000   $ 1,410,700
      Packages                                       5,544,500     5,556,000
      Operations and Maintenance                     2,429,200     2,732,800
                                                   ------------  ------------
                                                   $ 9,369,700   $ 9,699,500
                                                   ------------  ------------
                                                   ------------  ------------

    -------------------------------------------------------------------------
    (1) Corresponds to the trailing 12-month net income attributable to the
        Company's shareholders, divided by a trailing 13-month average equity
        attributable to the Company's shareholders, excluding "other
        components of equity".

    N.B.: All amounts indicated are in Canadian dollars.
    >>

SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for its first quarter ended March 31, 2011. This is the first period in which the Company's financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"); all 2010 comparative figures have been restated.

For the first quarter of 2011, net income attributable to the Company's shareholders was $73.9 million ($0.49 per share on a diluted basis), compared to $84.1 million ($0.55 per share on a diluted basis) for the comparable quarter in 2010. This reflects a lower net income excluding Infrastructure Concession Investments, partially offset by a higher net income from Infrastructure Concession Investments. The net income excluding Infrastructure Concession Investments was $49.5 million compared to $64.6 million for the first quarter of 2010, reflecting lower contributions from Mining & Metallurgy as well as Infrastructure & Environment, mainly due to the impact of the Libyan events, partially offset by better contributions from all other segments. The net income from Infrastructure Concession Investments increased by 25.0% to $24.4 million for the first quarter of 2011 compared to $19.5 million for the first quarter of 2010, mainly due to higher dividend revenues from Highway 407.

Revenues for the first quarter of 2011 increased by 25.1% to $1.6 billion compared to $1.3 billion in the first quarter of 2010. Revenues increased in all the Company's segments of activity and in all revenue categories, but particularly in Packages which increased by 64.6%.

Revenue backlog remained strong at $9.4 billion at the end of March 2011, compared to $8.6 billion at the end of March 2010 and $9.7 billion at the end of December 2010. The March 2011 and December 2010 balances do not include any Libyan projects. Until such time as the Libyan situation is clarified, the Company is maintaining its decision to exclude all of its Libyan projects from its revenue backlog as a precautionary measure. Note that due to the adoption of IFRS, and particularly its impact on infrastructure concession investments, the Company no longer includes its Infrastructure Concession Investments revenue backlog.

"Our revenue backlog and cash position remained strong. We were awarded significant projects during the first quarter, and we continue to see many opportunities across all our sectors of expertise," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We continue to expect our 2011 net income to remain in line with 2010, when we exclude the gains from the disposals of certain assets and investments recognized in 2010."

The Company's financial position remained strong with cash and cash equivalents totalling $1.2 billion as at March 31, 2011.

The Company's return on average shareholders' equity was 27.3% for the 12-month period ended March 31, 2011.

The Board of Directors today declared a cash dividend of $0.21 per share, payable on June 2, 2011 to shareholders of record on May 19, 2011. This dividend is an "eligible dividend" for income tax purposes.

SNC-Lavalin (TSX: SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. In business since 1911, the Company celebrates its 100th anniversary in 2011. www.snclavalin.com

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    -------------------------------------------------------------------------
    Reference in this press release, and hereafter, to the "Company" or to
    "SNC-Lavalin" means, as the context may require, SNC-Lavalin Group Inc.
    and all or some of its subsidiaries or joint ventures, or SNC-Lavalin
    Group Inc. or one or more of its subsidiaries or joint ventures.
    Statements made in this press release that describe the Company's or
    management's budgets, estimates, expectations, forecasts, objectives,
    predictions or projections of the future may be "forward-looking
    statements", which can be identified by the use of the conditional or
    forward-looking terminology such as "anticipates", "believes",
    "estimates", "expects", "may", "plans", "projects", "should", "will", or
    the negative thereof or other variations thereon. The Company cautions
    that, by their nature, forward-looking statements involve risks and
    uncertainties, and that its actual actions and/or results could differ
    materially from those expressed or implied in such forward-looking
    statements, or could affect the extent to which a particular projection
    materializes. For more information on risks and uncertainties, and
    assumptions that would cause the Company's actual results to differ from
    current expectations, please refer to the section "Risks and
    Uncertainties" and the section "How We Analyze and Report our Results",
    respectively, in the Company's 2010 Financial Report under "Management's
    Discussion and Analysis". The forward-looking statements herein reflect
    the Company's expectations as at the date of this press release and are
    subject to change after this date. The Company does not undertake any
    obligation to update publicly or to revise any such forward-looking
    statements, unless required by applicable legislation or regulation.
    -------------------------------------------------------------------------
    >>

SNC-Lavalin's Consolidated Financial Statements and Management's Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Company's website at www.snclavalin.com. These and other Company reports are also available on the website maintained by the Canadian Securities regulators at www.sedar.com.

SOURCE SNC-LAVALIN

For further information: Investors: Denis Jasmin, Vice-President, Investor Relations, 514-393-8000, ext. 7553, denis.jasmin@snclavalin.com; Media: Leslie Quinton, Vice-President, Global Corporate Communications, 514-393-8000, ext. 7354, leslie.quinton@snclavalin.com

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SNC-LAVALIN

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