Aecon reports improved results from continuing operations

• Improved operating results from continuing operations in both Q3 and nine months
• All three segments report operating profits in Q3
• Volumes up 17% in Q3 from same period in 2004
• Full year expected to show strong gains although risk remains of a net loss at year end

Toronto, Ontario – November 9, 2005: Aecon Group Inc. (TSX: ARE) today reported improved operating results from continuing operations in the third quarter and first nine months of 2005 compared to the same periods last year.

Revenue, Operating Results and Net Income

Third quarter revenue from continuing operations was $341 million, a $51 million increase compared to the same quarter in 2004.

Operating income from continuing operations (representing income from operations before extraordinary items, discontinued operations, interest and income taxes) in the quarter amounted to $4.9 million, compared to $0.4 million in the same period last year. Pre-tax income before discontinued operations was $2.5 million in the quarter, an improvement over the $0.6 million loss reported in the same quarter of 2004. These improvements were achieved despite a $1.7 million foreign exchange loss in 2005 compared to a $0.2 million foreign exchange loss in the same quarter last year.

Income before discontinued operations in the third quarter was $2.1 million ($0.07 per share), compared to a loss of $1.1 million in 2004. Adjusting for the effect of discontinued operations, there was a net loss in 2004 of $0.9 million ($0.03 per share).

In the first nine months, Aecon's revenue from continuing operations was $797 million (up $53 million from 2004) while operating income from continuing operations in the nine months was $0.1 million (versus a loss of $7.3 million in 2004).

Net loss in the nine months amounted to $4.6 million ($0.16 per share). This compares to a net loss in the first nine months of 2004 of $0.9 million ($0.03 per share) including discontinued operations and a $7.6 million loss ($0.28 per share) before discontinued operations. These results include a $2.2 million foreign exchange loss in 2005 and a $1.4 million foreign exchange gain in the same period last year, resulting in a combined swing of $3.6 million.

Outlook

"The strategic, operational and management changes made over the past two years are clearly delivering improved results," said John M. Beck, Chairman and CEO, Aecon Group Inc. "Aecon's core markets of civil, utility, industrial and buildings construction in Canada are all demonstrating improved conditions, and expectations are that these markets will continue to strengthen."

"Aecon's performance in our core businesses has improved substantially this year, with a dramatic turnaround and return to profitability in our Buildings division, and strong year over year improvement expected in both our Industrial and Civil & Utilities divisions," said Scott Balfour, President and CFO, Aecon Group Inc. "These improved results in our core businesses will drive substantial improvement in Aecon's bottom line results for 2005. There remains a risk, however, that the gains made throughout 2005 will not be sufficient to provide positive net income this year, and that a loss may have to be reported at year end."

Business Highlights

• The signing of financing documents for the new Quito International Airport project took place on August 24, 2005 among Aecon, its concession partners and the project lenders. The signing sets the stage for financial close and the start of construction.
• Aecon Civil and Utilities was awarded a $60 million contract by the Ministry of Transportation of Ontario for work on the Queen Elizabeth Way ("QEW") in the Hamilton area. The contract will complete the QEW and Red Hill Valley Parkway interchange. Construction began in September 2005 and completion is scheduled for the summer of 2009.
• Aecon Civil and Utilities was selected by the Toronto and Region Conservation Authority to build a $19 million breakwater wall to revitalize Toronto's waterfront in the Western Beaches area. The breakwater wall will be constructed with armour stone, weighing two to six tonnes each, supplied by the Aecon Marmora Quarry.
• Tolling and highway operations are functioning well on the Cross Israel Highway. Traffic continues to ramp-up as projected and has continued to exceed 70,000 trips per day through September 2005.
• Aecon Buildings in Ottawa will act as Construction Manager for the development of The Currents, a luxury condominium complex valued at $14.5 million. Aecon also negotiated with the Great Canadian Theatre Company to act as Construction Manager for its $3.5 million project to include the construction of a 250-seat theatre to be located in The Currents.
• Aecon Buildings in Seattle was awarded the Construction Management contract for a $15 million US addition to the Suquamish Clearwater Casino. Aecon previously completed the construction of the casino and parking garage. The addition will house an 85-room hotel. Work is expected to be finished in summer 2006.
• Aecon Cegerco in Montreal was named General Contractor for the $5.7 million Technopôle Angus Office Building Phase VII. The project aims to attain Gold Level certification through the Leadership in Energy and Environmental Design Green Building rating system issued by the U.S. and Canadian Green Building Councils.
• Innovative Steam Technologies was awarded a contract to design and fabricate a once through steam generator for South Africa's first combined-cycle cogeneration project. Worth over $2 million, the generator will be built for Mondi Business Paper. It is estimated the project will be completed by the end of June 2006.
• Aecon Industrial has substantially completed the rebuild of the damaged portion of Suncor's oilsands facility in Fort McMurray, Alberta. Aecon was the largest contractor on site for this important rebuild job and the project contributed to the strong performance of the Western Operations business unit of the Industrial segment.

Backlog and New Contract Awards

Backlog at September 30, 2005 was $489 million, a $57 million decline since the same time last year. Most of the decline occurred in the Buildings segment due largely to work-off of backlog at Pearson Airport and a warehouse project in Toronto (whose combined backlog at the end of September 2004 was $101 million) as well as a strategic focus on construction management projects in the Buildings division. This depletion of Aecon's backlog is expected to be reversed when the anticipated financial close of the Quito Airport project will add approximately $250 million to backlog.

Not included in backlog, but important to Aecon's prospects, are the expected revenues from Aecon's growing alliances and supplier-of-choice arrangements, such as those in place with Expertech, Union Gas and Suncor.

Contract awards of $299 million were booked in the third quarter, an increase of $32 million from the same quarter last year.

Segmented Results

Aecon reports its results in three segments: Infrastructure, Buildings and Industrial.

Infrastructure

The Infrastructure segment includes all aspects of civil construction from roads, highways, bridges and tunnels to airports, marine facilities, transit and power projects as well as utilities construction and infrastructure development.

Financial Highlights:

Overall, revenues from the Infrastructure segment decreased marginally in the third quarter compared to last year as revenue gains in roadbuilding and utilities operations were offset by declines from the segment's heavy civil operations in Quebec. Runway lighting work at Toronto airport, gas pipeline construction and communications work were the principal contributors to the revenue increase. Revenues from the segment's Quebec operations fell mostly as a result of the substantial completion of a hydroelectric dam project in Toulnustouc.

Income before interest and income taxes from the Infrastructure segment fell $1.8 million from the same quarter last year, as increases in earnings of $1.1 million from roadbuilding operations, $0.8 million from utilities operations and $0.8 million from Quebec operations were offset by a $4.5 million decline in earnings from other heavy civil operations. The decline in heavy civil operations was primarily due to the substantial completion last year of the Cross Israel and Nathpa Jhakri projects, both of which generated positive margins.

The signing in August of the financing documents for the Quito International Airport represented an important step forward for this project. The conditions precedent enumerated in these documents are expected to be satisfied in the fourth quarter, with the flow of funds to the project expected late in the quarter or early in 2006. Under Aecon's accounting policy for large multi-year contracts, construction profit is recognized only when progress reaches a stage of completion sufficient to reasonably determine the probable results (generally when the contract is 20% complete). This milestone is not likely to be reached on the Quito project until early in 2007.

Results from Aecon's civil construction operations in Quebec in 2005 are expected to reflect no material developments with respect to the Eastmain project. Management continues to believe that the Aecon/Hochtief joint venture building the project will be successful in recovering from the client the value of unpriced change orders associated with the project but acknowledges that an ongoing risk remains with respect to this project.

Tolling and highway operations are functioning well on the Cross Israel Highway, with traffic volumes continuing in the range anticipated. The projected after tax internal rate of return on the project remains in the 14% range assuming full exercise of the State and lender options. While this project continues to create economic value, no material accounting income will be booked until dividend payments begin, projected to be in 2009.

For 2005, the infrastructure segment is expected to generate an increased operating profit compared to last year.

Buildings

The Buildings segment includes all aspects of Aecon's commercial, institutional and multi-unit residential building construction and renovation activities.

Financial Highlights:

Revenues in the Buildings segment increased by $17 million, or 17.7%, from the same quarter last year. Volume increases in the Greater Toronto Area of $27 million and in Montreal of $6 million were partially offset by a $16 million decline in revenues generated in the United States through the segment's Seattle office. Revenues from the balance of the Buildings operations were approximately the same as the previous year.

Operating results in the third quarter were significantly better than last year, confirming a significant turnaround with now three consecutive profitable quarters after four consecutive quarters of losses in 2004. An operating profit of $1.5 million was realized in the quarter compared to an operating loss of $2.3 million in 2004.

Approximately $2.0 million of the improvement relates to the Ottawa business unit and $1.5 million to improvements at Aecon Cegerco in Montreal. In Seattle, rather than producing lower profits than last year as might be expected because of the decline in revenues, a $0.2 million improvement was achieved due primarily to tight cost controls.

These results further increase management's confidence that the turnaround in Aecon's Buildings segment is under way and that we will see a return to profitability in this segment in 2005.

Industrial

Industrial operations include all of Aecon's industrial manufacturing and construction activities from in-plant construction to the fabrication of specialty pipe and the design and manufacture of once through steam generators.

Financial Highlights:

Third quarter revenues of $83 million from the Industrial segment were approximately double those reported in the same quarter in 2004. The most significant increase occurred in Western Canada where revenues of $52 million were $49 million ahead of last year due primarily to major demolition and refurbishment work at an oilsands facility in Fort McMurray, Alberta. Bolstered by two large projects, fabrication revenues in Ontario and Eastern Canada were also higher, while revenues from industrial construction in Ontario and Eastern Canada were down from the prior year. Revenues from Innovative Steam Technologies ("IST"), which sells once through steam generators and licenses its technology, were also down compared to the same quarter in 2004.

The Industrial segment generated $2.5 million in operating profit in the quarter, compared to a loss of $1.5 million reported in 2004. Higher revenues in Western Canada resulted in improved earnings there, with a profit of $3.1 million for the quarter compared to a loss of $1.3 million last year. Similarly, the revenue increase from fabrication work in Ontario and Eastern Canada resulted in a reduced loss in 2005. Triggered principally by the drop in revenues noted above, profit from industrial construction in Ontario and Eastern Canada declined in the third quarter of 2005, as did results from IST, which reported a loss of $0.5 million in the third quarter compared to a profit of $0.4 million in 2004.

Although Aecon's Industrial earnings in the first nine months of 2005 are below those reported in the same period last year, a significant improvement in profit contribution is expected for the fourth quarter and full year as compared to 2004. Looking ahead, Ontario's need for increased generation capacity, including the recently announced refurbishment of Bruce Power's nuclear generation facilities, will likely lead to significant new opportunities for Aecon's industrial construction business.

In addition, the strong presence Aecon has established in the Northern Alberta oilsands, with industrial construction now added to its ongoing capabilities in pipe fabrication and module assembly, positions Aecon very well for continued growth in this market where billions of dollars are expected to be invested each year over the next decade.

Corporate and Other

Net corporate expenses increased from $1.5 million in the quarter ended September 30, 2004 to $3.0 million in the quarter ended September 30, 2005 - a $0.8 million increase when the impact of foreign exchange is factored out. The increase is due largely to increased accruals for employee incentives and higher defined benefit pension costs.

Consolidated Results

The Consolidated Results for the third quarter and nine months are available at the end of this news release.

Balance Sheet Highlights
(in thousands of dollars) (unaudited)

Conference Call

A conference call has been scheduled for Wednesday, November 9 at 10:00 a.m. ET to discuss Aecon's third quarter financial results. Participants should dial 1-877-267-2094 at least 10 minutes prior to the conference time of 10:00 a.m. For those unable to attend the call, a replay will be available after 12:00 p.m. at 1-800-558-5253 or 416-626-4100 until midnight, November 16, 2005. The passcode is 21268550#.

About Aecon

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. Forward-looking statements are based on estimates and assumptions derived from past experience and interpretation of historical trends, current conditions and expected future developments. Many factors could cause Aecon's actual results, performance or achievements to vary from those expressed or inferred by these statements, including without limitation, the future of the Eastmain Joint Venture to recover the value of unpriced change orders, failure to achieve the targets associated with the Quito Airport, the achievement of lower than anticipated volumes of work in Western Canada and the failure of IST to secure anticipated contract award levels. Risk factors are discussed in greater detail in Section 3.2 "Risk Factors" in the 2005 Annual Information Form available 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.

Consolidated Statements of Operations For the Three Months ended September 30, 2005 and 2004
(in thousands of dollars, except per share amounts) (unaudited)

Consolidated Statements of Operations For the Nine Months Ended September 30, 2005 and 2004
(in thousands of dollars, except per share amounts) (unaudited)