Aecon reaches Financial Close on $112 million hospital expansion and renovation project



    TORONTO, Aug. 19 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that
its Buildings Division has reached Financial Close on the expansion and
renovation of the Toronto Rehabilitation Institute's (Toronto Rehab)
University Centre located on University Avenue in Toronto. Under the Ontario
government's Alternative Financing and Procurement (AFP) program, the
approximately $112 million Toronto Rehab expansion project is being executed
as a 'build-finance' project. Aecon will finance the project through the
construction period, and will receive from Toronto Rehab an interim payment
upon completion of the new tower, and a final payment upon completed
construction through funding from the Ministry of Health and Long-Term Care
and the hospital's fundraising efforts.
    Financial Close was reached on August 19, and construction will commence
on August 20, 2008. The project is scheduled to be completed in the fall of
2011.

    
    The renovation and expansion plan includes:

    -  renovations to the hospital's existing 12-storey east wing and four-
       storey north wing;

    -  construction of a new 13-storey patient-care and research tower;

    -  17,000 square feet of new dedicated research space;

    -  dedicated education space; and

    -  a new, more accessible entrance to the building for patients and
       families.
    

    Aecon and their financial advisor, Stonebridge Financial Corporation,
have secured non-recourse project financing from financial partners: The
Manufacturers Life Insurance Company, Industrial Alliance Insurance &
Financial Services Inc, London Life Insurance Company and The Equitable Life
Insurance Company of Canada.
    "The Toronto Rehab expansion is Aecon's second build-finance hospital
project secured through Infrastructure Ontario in the last several months,
reflecting the growing healthcare market in Ontario and the strategic priority
we are placing on this sector," said Robert McDonald, President of Aecon
Buildings. "These projects, along with the successful and ongoing hospital
work we're doing in Atlantic Canada, demonstrate the expertise and competitive
strength Aecon has established in the healthcare and alternative financing and
procurement sectors."
    Infrastructure Ontario is a Crown corporation dedicated to managing some
of the province's larger and more complex infrastructure renewal projects -
ensuring they are built on time and on budget.

    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 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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