Aecon Industrial signs alliance agreement with Union Gas



    --Three Aecon segments now doing ongoing work with Union Gas--

    TORONTO, July 17 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that
its Industrial Division has entered into a multi-year alliance agreement with
Union Gas Limited to perform all of Union Gas' compressor station construction
and upgrading work across Ontario.
    While the agreement includes no stipulated or estimated amount of work to
be performed, Aecon has undertaken approximately $90 million in compressor
station work for Union Gas over the past three years in a series of individual
contracts.
    Under the alliance agreement, Aecon and Union Gas are creating a mutually
beneficial, team-oriented relationship to ensure cost control and efficient
project management, while maintaining a focus on safety, quality and
reliability on a variety of projects.
    The agreement will ensure the availability of Aecon's expertise and
resources for projects with Union Gas, and will also deliver cost efficiencies
and opportunities for continuous improvement. The scope of the agreement
includes both current and future natural gas compressor projects, and may also
include other station projects as appropriate.
    Aecon also has a long standing alliance agreement with Union Gas through
its Infrastructure division. Aecon Infrastructure installs mains, service
lines and distribution system pipelines, performs engineering pipeline project
work, assists with integrity and maintenance of Union Gas' distribution
pipeline infrastructure, and installs standard distribution stations.
    As well, Aecon Buildings is currently completing an office building for
Union Gas, and will be constructing two additional buildings for the company
in 2008/2009 - all three buildings are expected to achieve LEED (Leadership in
Energy and Environmental Design) Gold certification. In addition, Aecon
Buildings will complete Tennant Improvement renovations to various sites
across the Union Gas Portfolio.
    "Aecon has always been very proud of our long-standing relationship with
Union Gas," said Jake Berg, President of Aecon's Industrial Central Canada
Division. "The signing of this new alliance agreement is a progressive way for
both Union Gas and Aecon to effectively manage construction resource
requirements in an environment that is becoming increasingly
resource-constrained."

    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. Aecon is pleased to be recognized as one of the 50 Best
Employers in Canada as published by Report on Business Magazine.

    The information in this news release includes certain forward-looking
statements. These statements are based upon assumptions that are subject to
significant risks and uncertainties which are discussed in greater detail in
the section entitled "Risk Factors and Uncertainties" in Management's
Discussion and Analysis of operating results and Financial Condition for the
year ended December 31, 2007 filed on SEDAR at www.sedar.com. Although Aecon
believes that the expectations reflected in forward-looking statements are
reasonable, it can give no assurance that the expectations of any
forward-looking statements will prove to be correct.

    %SEDAR: 00004778EF




For further information:

For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, aecon@aecon.com, www.aecon.com


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