----

----

| (Mark      one)                                     |
|-----------------------------------------------------|
|        x                                       | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIESEXCHANGE      ACT OF 1934 |
|                                                |
| For      the quarterly period ended October 2, 2009 |
|                                                |   |
| OR                                                  |
|                                                |
|        o                                       | TRANSITION      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

| Delaware                                                            | 94-1381538                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
| 600      Montgomery Street, 26th      Floor                         |                                      |
| San      Francisco, California                                      | 94111-2728                                |
| (Address      of principal executive offices)                       | (Zip      Code)                           |

| 16BClass                          |   | Outstanding at November 2,    2009 |
|-----------------------------------|--------|------------------------------------|
|                              |   |                               |
| Common      Stock, $.01 par value |   | 83,920,206                         |

----

----

42
, Risk Factors beginningon page 
75
, as well as in other reportssubsequently filed from time to time with the United States Securities andExchange Commission.  We assume no obligation to revise or update anyforward-looking statements.

| PART      I.  | FINANCIAL      INFORMATION:                                                                      |   |
|---------------|--------------------------------------------------------------------------------------------------|--------|
|          |                                                                                             |   |
| Item      1.  | Financial      Statements                                                                        |   |
|          | Condensed Consolidated Balance Sheets                                                            |   |
|          | October      2, 2009 and January 2, 2009                                                         | 2      |
|          | Condensed Consolidated Statements of Operations and      Comprehensive Income                    |   |
|          | Three      and nine months ended October 2, 2009 and September 26,    2008                       | 3      |
|          | Condensed Consolidated Statements of Changes in      Stockholders’ Equity                  |   |
|          | Nine      months ended October 2, 2009 and September 26, 2008                                    | 4      |
|          | Condensed Consolidated Statements of Cash    Flows                                               |   |
|          | Nine      months ended October 2, 2009 and September 26, 2008                                    | 5      |
|          | Notes to Condensed Consolidated Financial Statements                                             | 7      |
| Item 2.       | Management’s Discussion and Analysis of Financial      Condition and Results of Operations | 42     |
| Item 3.       | Quantitative and Qualitative Disclosures About Market      Risk                                  | 74     |
| Item 4.       | Controls and Procedures                                                                          | 74     |
|          |                                                                                             |   |
| PART      II. | OTHER      INFORMATION:                                                                          |   |
|          |                                                                                             |   |
| Item 1.       | Legal Proceedings                                                                                | 75     |
| Item 1A.      | Risk Factors                                                                                     | 75     |
| Item 2.       | Unregistered Sales of Equity Securities and Use of      Proceeds                                 | 91     |
| Item 3.       | Defaults Upon Senior Securities                                                                  | 91     |
| Item 4.       | Submission of Matters to a Vote of Security Holders                                              | 91     |
| Item 5.       | Other Information                                                                                | 91     |
| Item 6.       | Exhibits                                                                                         | 92     |

----

Table ofContents

ITEM 1.  FINANCIAL STATEMENTS

3BCONDENSED CONSOLIDATED BALANCESHEETS -UNAUDITED

|                                                                                                                                                                          |   | October      2, 2009 |      |   | January      2, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|--------|----------------------|--------|
| ASSETS                                                                                                                                                                        |   |                 |      |   |                 |   |
| Current      assets:                                                                                                                                                          |   |                 |      |   |                 |   |
| Cash      and cash equivalents                                                                                                                                                |   | $                    | 469,657   |   |                 | $      | 223,998 |   |
| Short-term      investments                                                                                                                                                   |   |                 | 195,562   |   |                 |   | — |   |
| Accounts      receivable, including retentions of $43,719 and $51,141,      respectively                                                                                      |   |                 | 1,058,721 |   |                 |   | 1,062,177 |   |
| Costs      and accrued earnings in excess of billings on contracts                                                                                                            |   |                 | 1,053,835 |   |                 |   | 1,079,047 |   |
| Less      receivable allowances                                                                                                                                               |   |                 | (43,992   | )      |                 |   | (39,429 | ) |
| Net      accounts receivable                                                                                                                                                  |   |                 | 2,068,564 |   |                 |   | 2,101,795 |   |
| Deferred      tax assets                                                                                                                                                      |   |                 | 101,255   |   |                 |   | 161,061 |   |
| Prepaid      expenses and other assets                                                                                                                                        |   |                 | 161,848   |   |                 |   | 153,627 |   |
| Total      current assets                                                                                                                                                     |   |                 | 2,996,886 |   |                 |   | 2,640,481 |   |
| Investments      in and advances to unconsolidated joint ventures                                                                                                             |   |                 | 90,300    |   |                 |   | 269,616 |   |
| Property      and equipment at cost, net                                                                                                                                      |   |                 | 271,274   |   |                 |   | 347,076 |   |
| Intangible      assets, net                                                                                                                                                   |   |                 | 471,888   |   |                 |   | 511,508 |   |
| Goodwill                                                                                                                                                                      |   |                 | 3,158,213 |   |                 |   | 3,158,205 |   |
| Other      assets                                                                                                                                                             |   |                 | 80,890    |   |                 |   | 74,266 |   |
| Total      assets                                                                                                                                                             |   | $                    | 7,069,451 |   |                 | $      | 7,001,152 |   |
| LIABILITIES      AND EQUITY                                                                                                                                                   |   |                 |      |   |                 |   |   |   |
| Current      liabilities:                                                                                                                                                     |   |                 |      |   |                 |   |   |   |
| Book      overdrafts                                                                                                                                                          |   | $                    | 441       |   |                 | $      | 438 |   |
| Current      portion of long-term debt                                                                                                                                        |   |                 | 116,594   |   |                 |   | 16,506 |   |
| Accounts      payable and subcontractors payable, including retentions of $64,034 and      $85,097, respectively                                                              |   |                 | 632,874   |   |                 |   | 712,552 |   |
| Accrued      salaries and wages                                                                                                                                               |   |                 | 497,413   |   |                 |   | 430,938 |   |
| Billings      in excess of costs and accrued earnings on contracts                                                                                                            |   |                 | 236,736   |   |                 |   | 254,186 |   |
| Accrued      expenses and other                                                                                                                                               |   |                 | 166,262   |   |                 |   | 172,735 |   |
| Total      current liabilities                                                                                                                                                |   |                 | 1,650,320 |   |                 |   | 1,587,355 |   |
| Long-term      debt                                                                                                                                                           |   |                 | 780,502   |   |                 |   | 1,091,528 |   |
| Deferred      tax liabilities                                                                                                                                                 |   |                 | 331,613   |   |                 |   | 270,165 |   |
| Self-insurance      reserves                                                                                                                                                  |   |                 | 117,121   |   |                 |   | 101,930 |   |
| Pension,      post-retirement, and other benefit obligations                                                                                                                  |   |                 | 189,344   |   |                 |   | 202,520 |   |
| Other      long-term liabilities                                                                                                                                              |   |                 | 88,435    |   |                 |   | 91,898 |   |
| Total      liabilities                                                                                                                                                        |   |                 | 3,157,335 |   |                 |   | 3,345,396 |   |
| Commitments      and contingencies (Note 8)                                                                                                                                   |   |                 |      |   |                 |   |   |   |
| URS      Stockholders’ equity:                                                                                                                                          |   |                 |      |   |                 |   |   |   |
| Preferred      stock, authorized 3,000 shares; no shares outstanding                                                                                                          |   |                 | —   |   |                 |   | — |   |
| Common      stock, par value $.01; authorized 200,000 shares; 85,983 and 85,004 shares      issued, respectively; and 83,931 and 83,952 shares outstanding,      respectively |   |                 | 859       |   |                 |   | 850 |   |
| Treasury      stock, 2,052 and 1,052 shares at cost, respectively                                                                                                             |   |                 | (83,810   | )      |                 |   | (42,585 | ) |
| Additional      paid-in capital                                                                                                                                               |   |                 | 2,871,421 |   |                 |   | 2,838,290 |   |
| Accumulated      other comprehensive loss                                                                                                                                     |   |                 | (38,209   | )      |                 |   | (55,866 | ) |
| Retained      earnings                                                                                                                                                        |   |                 | 1,119,307 |   |                 |   | 883,942 |   |
| Total      URS stockholders’ equity                                                                                                                                     |   |                 | 3,869,568 |   |                 |   | 3,624,631 |   |
| Noncontrolling      interests                                                                                                                                                 |   |                 | 42,548    |   |                 |   | 31,125 |   |
| Total      stockholders’ equity                                                                                                                                         |   |                 | 3,912,116 |   |                 |   | 3,655,756 |   |
| Total      liabilities and stockholders’ equity                                                                                                                    |   | $                    | 7,069,451 |   |                 | $      | 7,001,152 |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME- UNAUDITED

|                                                                                                                    |   | Three      Months Ended |       |   | Nine      Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                                                                                                    |   | October      2,2009     |       |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Revenues                                                                                                                |   | $                       | 2,318,525  |   |                   | $      | 2,588,091 |   |   | $ | 7,136,771 |   |   | $ | 7,378,062 |   |
| Cost      of revenues                                                                                                   |   |                    | (2,217,054 | )      |                   |   | (2,448,700 | ) |   |   | (6,765,745 | ) |   |   | (7,008,457 | ) |
| General      and administrative expenses                                                                                |   |                    | (17,943    | )      |                   |   | (20,440 | ) |   |   | (56,635 | ) |   |   | (57,076 | ) |
| Equity      in income of unconsolidated joint ventures                                                                  |   |                    | 20,703     |   |                   |   | 24,289 |   |   |   | 79,048 |   |   |   | 81,021 |   |
| Operating      income                                                                                                   |   |                    | 104,231    |   |                   |   | 143,240 |   |   |   | 393,439 |   |   |   | 393,550 |   |
| Interest      expense                                                                                                   |   |                    | (10,994    | )      |                   |   | (21,401 | ) |   |   | (37,643 | ) |   |   | (70,146 | ) |
| Other      income, net (Note 2)                                                                                         |   |                    | —    |   |                   |   | — |   |   |   | 47,914 |   |   |   | — |   |
| Income      before income taxes                                                                                         |   |                    | 93,237     |   |                   |   | 121,839 |   |   |   | 403,710 |   |   |   | 323,404 |   |
| Income      tax expense                                                                                                 |   |                    | (24,640    | )      |                   |   | (51,028 | ) |   |   | (151,765 | ) |   |   | (136,013 | ) |
| Net      income                                                                                                         |   |                    | 68,597     |   |                   |   | 70,811 |   |   |   | 251,945 |   |   |   | 187,391 |   |
| Noncontrolling      interests in income of consolidated subsidiaries, net of    tax                                     |   |                    | (3,840     | )      |                   |   | (5,046 | ) |   |   | (16,580 | ) |   |   | (12,831 | ) |
| Net      income attributable to URS                                                                                     |   | $                       | 64,757     |   |                   | $      | 65,765 |   |   | $ | 235,365 |   |   | $ | 174,560 |   |
|                                                                                                                    |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income (loss):                                                                                       |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                         |   | $                       | 68,597     |   |                   | $      | 70,811 |   |   | $ | 251,945 |   |   | $ | 187,391 |   |
| Pension      and post-retirement related adjustments, net of tax                                                        |   |                    | (542       | )      |                   |   | — |   |   |   | (456 | ) |   |   | — |   |
| Foreign      currency translation adjustments, net of tax                                                               |   |                    | (405       | )      |                   |   | (13,380 | ) |   |   | 9,917 |   |   |   | (7,962 | ) |
| Foreign      currency translation adjustment due to sale of investment in      unconsolidated joint venture, net of tax |   |                    | —    |   |                   |   | — |   |   |   | 5,115 |   |   |   | — |   |
| Unrealized      gain (loss) on interest rate swaps, net of tax                                                          |   |                    | 826        |   |                   |   | 1,201 |   |   |   | 3,081 |   |   |   | (1,598 | ) |
| Comprehensive      income                                                                                               |   |                    | 68,476     |   |                   |   | 58,632 |   |   |   | 269,602 |   |   |   | 177,831 |   |
| Noncontrolling      interests in comprehensive income of consolidated subsidiaries, net of      tax                     |   |                    | (3,840     | )      |                   |   | (5,046 | ) |   |   | (16,580 | ) |   |   | (12,831 | ) |
| Comprehensive      income attributable to URS                                                                           |   | $                       | 64,636     |   |                   | $      | 53,586 |   |   | $ | 253,022 |   |   | $ | 165,000 |   |
|                                                                                                                    |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share (Note 1):                                                                                       |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                   |   | $                       | .80        |   |                   | $      | .78 |   |   | $ | 2.89 |   |   | $ | 2.07 |   |
| Diluted                                                                                                                 |   | $                       | .79        |   |                   | $      | .77 |   |   | $ | 2.87 |   |   | $ | 2.06 |   |
| Weighted-average      shares outstanding (Note 1):                                                                      |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                   |   |                    | 81,418     |   |                   |   | 82,296 |   |   |   | 81,419 |   |   |   | 82,030 |   |
| Diluted                                                                                                                 |   |                    | 81,780     |   |                   |   | 82,765 |   |   |   | 81,895 |   |   |   | 82,606 |   |

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Table of Contents

CONDENSEDCONSOLIDATED STATEMENTS OF

|                                                                                                                    |   |              |    |   |     |    |    | Additional |   |    | AccumulatedOther |   |   |               |    |   | Total      URS      |    |    |           |   |      |      |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|----------|---------|---------|------------|--------|---------|------------------|--------|--------|--------------------|---------|--------|---------------------|---------|---------|----------------|--------|-----------|-----------|--------|
|                                                                                                                    |   | Common      Stock |    |   | Treasury |    |    | Paid-in    |   |    | Comprehensive    |   |   | Retained           |    |   | Stockholders’ |    |    | Noncontrolling |   |      | Total     |   |
|                                                                                                                    |   | Shares            |    |   | Amount   |    |    | Stock      |   |    | Capital          |   |   | Income      (Loss) |    |   | Earnings            |    |    | Equity         |   |      | Interests |   |   | Equity |   |
| Balances,      December 28, 2007                                                                                        |   | 83,303            |    |   | $        | 833     |    |       | $      | (287    | )                |   | $      | 2,797,238          |    |   | $                   | 16,635  |    |           | $      | 664,151   |      |   | $ | 3,478,570 |   |   | $ | 25,086 |   |   | $ | 3,503,656 |   |
| Employee      stock purchases and exercises of stock options                                                            |   | 263               |    |   |     | 2       |    |       |   | — |             |   |   | 2,480              |    |   |                | — |    |           |   | —   |      |   |   | 2,482 |   |   |   | — |   |   |   | 2,482 |   |
| Stock-based      compensation                                                                                           |   | 939               |    |   |     | 10      |    |       |   | — |             |   |   | 22,087             |    |   |                | — |    |           |   | —   |      |   |   | 22,097 |   |   |   | — |   |   |   | 22,097 |   |
| Excess      tax benefits from stock-based compensation                                                                  |   | —           |    |   |     | — |    |       |   | — |             |   |   | 3,923              |    |   |                | — |    |           |   | —   |      |   |   | 3,923 |   |   |   | — |   |   |   | 3,923 |   |
| Foreign      currency translation adjustments, net of tax                                                               |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | (7,962  | )       |           |   | —   |      |   |   | (7,962 | ) |   |   | — |   |   |   | (7,962 | ) |
| Interest      rate swaps, net of tax                                                                                    |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | (1,598  | )       |           |   | —   |      |   |   | (1,598 | ) |   |   | — |   |   |   | (1,598 | ) |
| Purchase      of treasury stock                                                                                         |   | (1,000            | )       |   |     | — |    |       |   | (42,298 | )                |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | (42,298 | ) |   |   | — |   |   |   | (42,298 | ) |
| Distributions      to noncontrolling interests                                                                          |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | — |   |   |   | (11,540 | ) |   |   | (11,540 | ) |
| Other      transactions with noncontrolling interests                                                                   |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | — |   |   |   | 549 |   |   |   | 549 |   |
| Net      income                                                                                                         |   |              | — |   |     |    | — |       |   |    | —          |   |   |               | — |   |                |    | — |           |   |      | 174,560   |   |   |   | 174,560 |   |   |   | 12,831 |   |   |   | 187,391 |   |
| Balances,      September 26, 2008                                                                                       |   | 83,505            |    |   | $        | 845     |    |       | $      | (42,585 | )                |   | $      | 2,825,728          |    |   | $                   | 7,075   |    |           | $      | 838,711   |      |   | $ | 3,629,774 |   |   | $ | 26,926 |   |   | $ | 3,656,700 |   |
|                                                                                                                    |   |              |    |   |     |    |    |       |   |    |             |   |   |               |    |   |                |    |    |           |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      January 2, 2009                                                                                          |   | 83,952            |    |   | $        | 850     |    |       | $      | (42,585 | )                |   | $      | 2,838,290          |    |   | $                   | (55,866 | )       |           | $      | 883,942   |      |   | $ | 3,624,631 |   |   | $ | 31,125 |   |   | $ | 3,655,756 |   |
| Employee      stock purchases and exercises of stock options                                                            |   | 110               |    |   |     | 1       |    |       |   | — |             |   |   | 972                |    |   |                | — |    |           |   | —   |      |   |   | 973 |   |   |   | — |   |   |   | 973 |   |
| Stock-based      compensation                                                                                           |   | 869               |    |   |     | 8       |    |       |   | — |             |   |   | 30,176             |    |   |                | — |    |           |   | —   |      |   |   | 30,184 |   |   |   | — |   |   |   | 30,184 |   |
| Excess      tax benefits from stock-based compensation                                                                  |   | —           |    |   |     | — |    |       |   | — |             |   |   | 1,983              |    |   |                | — |    |           |   | —   |      |   |   | 1,983 |   |   |   | — |   |   |   | 1,983 |   |
| Foreign      currency translation adjustments, net of tax                                                               |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | 9,917   |    |           |   | —   |      |   |   | 9,917 |   |   |   | — |   |   |   | 9,917 |   |
| Foreign      currency translation adjustment due to sale of investment in      unconsolidated joint venture, net of tax |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | 5,115   |    |           |   | —   |      |   |   | 5,115 |   |   |   | — |   |   |   | 5,115 |   |
| Pension      and post-retirement related adjustments, net of tax                                                        |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | (456    | )       |           |   | —   |      |   |   | (456 | ) |   |   | — |   |   |   | (456 | ) |
| Interest      rate swaps, net of tax                                                                                    |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | 3,081   |    |           |   | —   |      |   |   | 3,081 |   |   |   | — |   |   |   | 3,081 |   |
| Purchase      of treasury stock                                                                                         |   | (1,000            | )       |   |     | — |    |       |   | (41,225 | )                |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | (41,225 | ) |   |   | — |   |   |   | (41,225 | ) |
| Unrealized      loss on foreign currency forward contract, net of tax                                                   |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | (10,728 | )       |           |   | —   |      |   |   | (10,728 | ) |   |   | — |   |   |   | (10,728 | ) |
| Reclassification      of unrealized loss on foreign currency forward contract, net of      tax                          |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | 10,728  |    |           |   | —   |      |   |   | 10,728 |   |   |   | — |   |   |   | 10,728 |   |
| Distributions      to noncontrolling interests                                                                          |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | — |   |   |   | (22,238 | ) |   |   | (22,238 | ) |
| Contributions      from joint venture partners                                                                          |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | — |   |   |   | 15,300 |   |   |   | 15,300 |   |
| Other      transactions with noncontrolling interests                                                                   |   | —           |    |   |     | — |    |       |   | — |             |   |   | —            |    |   |                | — |    |           |   | —   |      |   |   | — |   |   |   | 1,781 |   |   |   | 1,781 |   |
| Net      income                                                                                                         |   |              | — |   |     |    | — |       |   |    | —          |   |   |               | — |   |                |    | — |           |   |      | 235,365   |   |   |   | 235,365 |   |   |   | 16,580 |   |   |   | 251,945 |   |
| Balances,      October 2, 2009                                                                                          |   | 83,931            |    |   | $        | 859     |    |       | $      | (83,810 | )                |   | $      | 2,871,421          |    |   | $                   | (38,209 | )       |           | $      | 1,119,307 |      |   | $ | 3,869,568 |   |   | $ | 42,548 |   |   | $ | 3,912,116 |   |

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Table of Contents

5BCONDENSED CONSOLIDATED STATEMENTS OFCASH FLOWS -UNAUDITED

|                                                                                                     |   | Nine      Months Ended |     |
|----------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                                     |   | October      2,2009    |     |   | September      26,2008 |   |
| Cash      flows from operating activities:                                                               |   |                   |     |   |   |   |
| Net      income                                                                                          |   | $                      | 251,945  |   |   | $ | 187,391 |   |
| Adjustments      to reconcile net income to net cash from operating    activities:                       |   |                   |     |   |   |   |   |   |
| Depreciation                                                                                             |   |                   | 66,958   |   |   |   | 66,147 |   |
| Amortization      of intangible assets                                                                   |   |                   | 39,619   |   |   |   | 39,374 |   |
| Amortization      of debt issuance costs                                                                 |   |                   | 5,915    |   |   |   | 6,280 |   |
| Loss      on settlement of foreign currency forward contract                                             |   |                   | 27,675   |   |   |   | — |   |
| Net      gain on sale of investment in unconsolidated joint venture                                      |   |                   | (75,589  | ) |   |   | — |   |
| Normal      profit                                                                                       |   |                   | (10,895  | ) |   |   | (6,098 | ) |
| Provision      for doubtful accounts                                                                     |   |                   | 6,415    |   |   |   | 3,324 |   |
| Deferred      income taxes                                                                               |   |                   | 102,753  |   |   |   | 66,242 |   |
| Stock-based      compensation                                                                            |   |                   | 30,184   |   |   |   | 22,097 |   |
| Excess      tax benefits from stock-based compensation                                                   |   |                   | (1,983   | ) |   |   | (3,923 | ) |
| Equity      in income of unconsolidated joint ventures, less dividends      received                     |   |                   | (19,723  | ) |   |   | (16,192 | ) |
| Changes      in operating assets, liabilities and other, net of effects of      acquisitions:            |   |                   |     |   |   |   |   |   |
| Accounts      receivable and costs and accrued earnings in excess of billings on      contracts          |   |                   | 40,817   |   |   |   | (94,773 | ) |
| Prepaid      expenses and other assets                                                                   |   |                   | (998     | ) |   |   | (12,339 | ) |
| Changes      in advances to unconsolidated joint ventures                                                |   |                   | 14,984   |   |   |   | (2,878 | ) |
| Accounts      payable, accrued salaries and wages and accrued expenses                                   |   |                   | (23,882  | ) |   |   | 9,085 |   |
| Billings      in excess of costs and accrued earnings on contracts                                       |   |                   | (9,818   | ) |   |   | 8,038 |   |
| Other      long-term liabilities                                                                         |   |                   | 398      |   |   |   | 1,813 |   |
| Other      assets, net                                                                                   |   |                   | 3,381    |   |   |   | 9,774 |   |
| Total      adjustments and changes                                                                       |   |                   | 196,211  |   |   |   | 95,971 |   |
| Net      cash from operating activities                                                                  |   |                   | 448,156  |   |   |   | 283,362 |   |
| Cash      flows from investing activities:                                                               |   |                   |     |   |   |   |   |   |
| Payments      for business acquisitions, net of cash acquired                                            |   |                   | —  |   |   |   | (26,784 | ) |
| Proceeds      from disposal of property and equipment, and sale-leaseback      transactions              |   |                   | 53,362   |   |   |   | 10,722 |   |
| Proceeds      from sale of investment in unconsolidated joint venture, net of related      selling costs |   |                   | 282,584  |   |   |   | — |   |
| Payment      in settlement of foreign currency forward contract                                          |   |                   | (273,773 | ) |   |   | — |   |
| Receipt      in settlement of foreign currency forward contract                                          |   |                   | 246,098  |   |   |   | — |   |
| Investments      in and advances to unconsolidated joint ventures                                        |   |                   | (13,769  | ) |   |   | (28,035 | ) |
| Changes      in restricted cash                                                                          |   |                   | (1,108   | ) |   |   | (134 | ) |
| Capital      expenditures, less equipment purchased through capital leases and      equipment notes      |   |                   | (34,455  | ) |   |   | (62,329 | ) |
| Purchase      of short-term investments                                                                  |   |                   | (195,562 | ) |   |   | — |   |
| Net      cash from investing activities                                                                  |   |                   | 63,377   |   |   |   | (106,560 | ) |

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|                                                                                       |   | Nine      Months Ended |     |
|--------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                       |   | October      2,2009    |     |   | September      26,2008 |   |
| Cash      flows from financing activities:                                                 |   |                   |     |   |   |   |
| Long-term      debt principal payments                                                     |   |                   | (215,030 | ) |   |   | (176,777 | ) |
| Net      payments under lines of credit and short-term notes                               |   |                   | (483     | ) |   |   | (259 | ) |
| Net      change in book overdrafts                                                         |   |                   | 3        |   |   |   | 10,676 |   |
| Capital      lease obligation payments                                                     |   |                   | (4,771   | ) |   |   | (5,949 | ) |
| Excess      tax benefits from stock-based compensation                                     |   |                   | 1,983    |   |   |   | 3,923 |   |
| Proceeds      from employee stock purchases and exercises of stock    options              |   |                   | 9,865    |   |   |   | 19,314 |   |
| Net      distributions to noncontrolling interests                                         |   |                   | (16,216  | ) |   |   | (20,304 | ) |
| Purchase      of treasury stock                                                            |   |                   | (41,225  | ) |   |   | (42,298 | ) |
| Net      cash from financing activities                                                    |   |                   | (265,874 | ) |   |   | (211,674 | ) |
| Net      increase (decrease) in cash and cash equivalents                                  |   |                   | 245,659  |   |   |   | (34,872 | ) |
| Cash      and cash equivalents at beginning of period                                      |   |                   | 223,998  |   |   |   | 256,502 |   |
| Cash      and cash equivalents at end of period                                            |   | $                      | 469,657  |   |   | $ | 221,630 |   |
|                                                                                       |   |                   |     |   |   |   |   |   |
| Supplemental      information:                                                             |   |                   |     |   |   |   |   |   |
| Interest      paid                                                                         |   | $                      | 31,802   |   |   | $ | 63,794 |   |
| Taxes      paid                                                                            |   | $                      | 56,094   |   |   | $ | 44,336 |   |
| Taxes      refunded                                                                        |   | $                      | 30,565   |   |   | $ | — |   |
|                                                                                       |   |                   |     |   |   |   |   |   |
| Supplemental      schedule of noncash investing and financing activities:                  |   |                   |     |   |   |   |   |   |
| Fair      value of assets acquired (net of cash acquired)                                  |   | $                      | —  |   |   | $ | 9,747 |   |
| Liabilities      assumed                                                                   |   |                   | —  |   |   |   | (9,747 | ) |
| Non      cash business acquisitions                                                        |   | $                      | —  |   |   | $ | — |   |
| Equipment      acquired with capital lease obligations and equipment note      obligations |   | $                      | 5,463    |   |   | $ | 8,895 |   |

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NOTE1.  BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTINGPOLICIES

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|                                                                             |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|----------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (In      thousands, except per share data)                                       |   | October      2,2009     |    |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Net      income attributable to URS                                              |   | $                       | 64,757  |   |                   | $      | 65,765 |   |   | $ | 235,365 |   |   | $ | 174,560 |   |
| Less:  Earnings      allocated to participating securities             |   |                    | — |   |                   |   | (1,926 | ) |   |   | — |   |   |   | (4,528 | ) |
| Earnings      available to common stockholders – Basic and Diluted         |   | $                       | 64,757  |   |                   | $      | 63,839 |   |   | $ | 235,365 |   |   | $ | 170,032 |   |
|                                                                             |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      common stock shares outstanding (1)                        |   |                    | 81,418  |   |                   |   | 82,296 |   |   |   | 81,419 |   |   |   | 82,030 |   |
| Effect      of dilutive stock options and restricted stock awards and      units |   |                    | 362     |   |                   |   | 469 |   |   |   | 476 |   |   |   | 576 |   |
| Weighted-average      common stock outstanding – Diluted                   |   |                    | 81,780  |   |                   |   | 82,765 |   |   |   | 81,895 |   |   |   | 82,606 |   |

| (1)   | Weighted-average      common stock outstanding excludes treasury  stock. |
|-----------------|--------------------------------------------------------------------------|

| (In      thousands)                                 |   | October      2,2009 |   |   | September      26,2008 |   |
|-----------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Anti-dilutive      equity awards not included above |   |                | 559    |   |                   |   | — |   |

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|                                                                        |   | As      of          |    |
|-----------------------------------------------------------------------------|--------|---------------------|---------|
| (In      millions)                                                          |   | October      2,2009 |    |   | January      2,2009 |   |
| Accounts      receivable:                                                   |   |                |    |   |   |   |
| U.S.      federal government                                                |   | $                   | 443.3   |   |   | $ | 294.5 |   |
| Others                                                                      |   |                | 615.4   |   |   |   | 767.7 |   |
| Total      accounts receivable                                              |   | $                   | 1,058.7 |   |   | $ | 1,062.2 |   |
| Costs      and accrued earnings in excess of billings on contracts:         |   |                |    |   |   |   |   |   |
| U.S.      federal government                                                |   | $                   | 522.2   |   |   | $ | 471.4 |   |
| Others                                                                      |   |                | 531.6   |   |   |   | 607.6 |   |
| Total      costs and accrued earnings in excess of billings on    contracts |   | $                   | 1,053.8 |   |   | $ | 1,079.0 |   |

Interim and Annual Goodwill Impairment Review

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| ·   | The      URS Division Operating Segment |
|--------------------|-----------------------------------------|

| ·   | Within      the EG&G Division OperatingSegment: |
|--------------------|-----------------------------------------------------|

| o   | Defense |
|---------------|---------|

| o   | EG&G |
|---------------|----------|

| ·   | Within      the Washington Division OperatingSegment: |
|--------------------|-------------------------------------------------------|

| o   | Energy      & Environment |
|---------------|-------------------------------|

| o   | Infrastructure |
|---------------|----------------|

| o   | Industrial/Process |
|---------------|--------------------|

| o   | Mining |
|---------------|--------|

| o   | Power |
|---------------|-------|

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|                                                                      |   | As      of          |   |
|---------------------------------------------------------------------------|--------|---------------------|--------|
| (In      millions)                                                        |   | October      2,2009 |   |   | January      2,2009 |   |
| Billings      in excess of costs and accrued earnings on contracts        |   | $                   | 196.7  |   |   | $ | 182.6 |   |
| Advance      payments negotiated as a contract condition                  |   |                | 10.8   |   |   |   | 30.4 |   |
| Estimated      losses on uncompleted contracts                            |   |                | 19.6   |   |   |   | 21.0 |   |
| Normal      profit liabilities                                            |   |                | 0.5    |   |   |   | 11.1 |   |
| Project-related      legal liabilities and other project-related reserves |   |                | 6.1    |   |   |   | 4.0 |   |
| Other                                                                     |   |                | 3.0    |   |   |   | 5.1 |   |
| Total                                                                     |   | $                   | 236.7  |   |   | $ | 254.2 |   |

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We adopted new accounting guidance onsubsequent events in the second quarter of our 2009 fiscal year.  Thisnew guidance modified terminology and disclosures of events that occur after thebalance sheet date but before financial statements are issued or are availableto be issued, including requiring disclosure of the date through whichsubsequent events have been evaluated.  Consistent with past practice,we have evaluated subsequent events through the issuance date of our financialstatements, which, for the quarter ended October 2, 2009, was November 12,2009.

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2.  INVESTMENTS IN AND ADVANCES TO JOINTVENTURES

| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                   |   | October      2,2009 |    |   | January      2,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
| Cash      and cash      equivalents                                                                       |   | $                   | 30,806  |   |                | $      | 23,696 |   |
| Net      accounts      receivable                                                                         |   |                | 29,321  |   |                |   | 58,838 |   |
| Other      current      assets                                                                            |   |                | — |   |                |   | 199 |   |
| Non-current      assets                                                                                   |   |                | — |   |                |   | 3 |   |
| Total      assets                                                                                                                                           |   | $                   | 60,127  |   |                | $      | 82,736 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |    |   |                |   |   |   |
| Accounts      and subcontractors      payable                                                             |   | $                   | 25,223  |   |                | $      | 39,801 |   |
| Billings      in excess of costs and accrued earnings                                                                                                                                                                                                                                                                                                                                                                 |   |                | 8,384   |   |                |   | 17,515 |   |
| Accrued      expenses and      other                                                                      |   |                | 210     |   |                |   | — |   |
| Non-current      liabilities                                                                              |   |                | — |   |                |   | 349 |   |
| Total      liabilities                                                                                                                       |   |                | 33,817  |   |                |   | 57,665 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |    |   |                |   |   |   |
| Total      owners’      equity                                                                                                         |   |                | 26,310  |   |                |   | 25,071 |   |
| Total      liabilities and owners’ equity                                                                                                                                                                                                                                                                                                                                                                       |   | $                   | 60,127  |   |                | $      | 82,736 |   |

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| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                   |   | October      2,2009 |    |   | January      2,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
| Cash      and cash      equivalents                                                                       |   | $                   | 12,005  |   |                | $      | 46,607 |   |
| Net      accounts      receivable                                                                         |   |                | 4,020   |   |                |   | 85,285 |   |
| Total      assets                                                                                                                                           |   | $                   | 16,025  |   |                | $      | 131,892 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |    |   |                |   |   |   |
| Accounts      and subcontractors      payable                                                             |   | $                   | 12,186  |   |                | $      | 121,158 |   |
| Accrued      expenses and      other                                                                      |   |                | — |   |                |   | 1,179 |   |
| Total      liabilities                                                                                                                       |   |                | 12,186  |   |                |   | 122,337 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |    |   |                |   |   |   |
| Total      owners’      equity                                                                                                         |   |                | 3,839   |   |                |   | 9,555 |   |
| Total      liabilities and owners’ equity                                                                                                                                                                                                                                                                                                                                                                       |   | $                   | 16,025  |   |                | $      | 131,892 |   |

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| (In      millions)                                           |   | Nine      Months Ended October 2,2009 |   |
|--------------------------------------------------------------|--------|---------------------------------------|--------|
| Other      income, net:                                      |   |                                  |   |
| Sales      proceeds                                          |   | $                                     | 287.8  |   |
| Less:  carrying      value                         |   |                                  | (207.0 | ) |
| sale-related      costs                                      |   |                                  | (5.2   | ) |
| Gain      on sale                                            |   |                                  | 75.6   |   |
| Loss      on settlement of foreign currency forward contract |   |                                  | (27.7  | ) |
| Other      income, net                                       |   | $                                     | 47.9   |   |

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| (In      thousands)                               |   | MIBRAGMiningVenture      (1) |      |   | Other      UnconsolidatedJoint      Ventures (2) |     |
|---------------------------------------------------|--------|------------------------------|-----------|--------|--------------------------------------------------|----------|
| October 2, 2009                                   |   |                         |      |   |                                             |     |
| Current      assets                               |   |  N/A                    |      |   | $                                                | 620,843  |   |
| Noncurrent      assets                            |   |  N/A                    |      |   | $                                                | 15,749   |   |
| Current      liabilities                          |   |  N/A                    |      |   | $                                                | 446,925  |   |
| Noncurrent      liabilities                       |   |  N/A                    |      |   | $                                                | 4,672    |   |
|                                              |   |                         |      |   |                                             |     |   |   |
| January 2, 2009                                   |   |                         |      |   |                                             |     |   |   |
| Current      assets                               |   | $                            | 173,270   |   |                                             | $        | 587,502 |   |
| Noncurrent      assets                            |   | $                            | 1,048,991 |   |                                             | $        | 15,097 |   |
| Current      liabilities                          |   | $                            | 82,100    |   |                                             | $        | 444,845 |   |
| Noncurrent      liabilities                       |   | $                            | 782,008   |   |                                             | $        | 4,348 |   |
|                                              |   |                         |      |   |                                             |     |   |   |
| Three months ended October 2, 2009 (1)            |   |                         |      |   |                                             |     |   |   |
| Revenues                                          |   |  N/A                    |      |   | $                                                | 425,389  |   |
| Cost      of revenues                             |   |  N/A                    |      |   |                                             | (362,227 | ) |
| Income      from continuing operations before tax |   |  N/A                    |      |   | $                                                | 63,162   |   |
| Net      income                                   |   |  N/A                    |      |   | $                                                | 61,376   |   |
|                                              |   |                         |      |   |                                             |     |   |   |
| Three months ended September 26,      2008        |   |                         |      |   |                                             |     |   |   |
| Revenues                                          |   | $                            | 133,266   |   |                                             | $        | 439,953 |   |
| Cost      of revenues                             |   |                         | (114,879  | )      |                                             |     | (390,389 | ) |
| Income      from continuing operations before tax |   | $                            | 18,387    |   |                                             | $        | 49,564 |   |
| Net      income                                   |   | $                            | 18,320    |   |                                             | $        | 49,564 |   |
|                                              |   |                         |      |   |                                             |     |   |   |
| Nine months ended October 2, 2009 (1)             |   |                         |      |   |                                             |     |   |   |
| Revenues                                          |   | $                            | 219,606   |   |                                             | $        | 1,426,963 |   |
| Cost      of revenues                             |   |                         | (181,770  | )      |                                             |     | (1,235,808 | ) |
| Income      from continuing operations before tax |   | $                            | 37,836    |   |                                             | $        | 191,155 |   |
| Net      income                                   |   | $                            | 37,307    |   |                                             | $        | 182,730 |   |
|                                              |   |                         |      |   |                                             |     |   |   |
| Nine months ended September 26,      2008         |   |                         |      |   |                                             |     |   |   |
| Revenues                                          |   | $                            | 397,274   |   |                                             | $        | 1,449,541 |   |
| Cost      of revenues                             |   |                         | (343,175  | )      |                                             |     | (1,282,541 | ) |
| Income      from continuing operations before tax |   | $                            | 54,099    |   |                                             | $        | 167,000 |   |
| Net      income                                   |   | $                            | 51,914    |   |                                             | $        | 167,000 |   |

| (1)   | The      financial information for the MIBRAG mining venture is presented through      June 10, 2009, the closing date of the sale of our equity investment in      MIBRAG. |   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| (2)   | Income      from unconsolidated U.S. joint ventures is generally not taxable in most      tax jurisdictions in the United States.  The tax expenses on our      other unconsolidated joint ventures are primarily related to foreign      taxes. |   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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3.  PROPERTY, EQUIPMENT, AND INTANGIBLEASSETS

| (In      thousands)                                      |   | October      2,2009 |     |   | January      2,2009 |   |
|----------------------------------------------------------|--------|---------------------|----------|--------|---------------------|--------|
| Equipment      and internal-use software                 |   | $                   | 385,515  |   |                | $      | 365,855 |   |
| Construction      and mining equipment (1)          |   |                | 125,340  |   |                |   | 180,268 |   |
| Furniture      and fixtures                              |   |                | 56,556   |   |                |   | 54,214 |   |
| Leasehold      improvements                              |   |                | 70,898   |   |                |   | 63,267 |   |
| Construction      in progress                            |   |                | 132      |   |                |   | 3,564 |   |
| Land      and improvements                               |   |                | 584      |   |                |   | 584 |   |
|                                                     |   |                | 639,025  |   |                |   | 667,752 |   |
| Accumulated      depreciation and amortization (1)  |   |                | (367,751 | )      |                |   | (320,676 | ) |
| Property      and equipment at cost, net                 |   | $                   | 271,274  |   |                | $      | 347,076 |   |

| (1)   | During      the third quarter of 2009, we sold $55.7 million of mining equipment, with      accumulated depreciation of $12.9 million, located in Bolivia to our      former client following their termination of our mining      contract.  See further discussion under the “Interim and Annual      Goodwill Impairment Review” section of Note 1, “Business, Basis of      Presentation, and Accounting Policies.” |   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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NOTE 4.  INDEBTEDNESS

| (In      thousands)                                             |   | October      2,2009 |    |   | January      2,2009 |   |
|-----------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|
| Bank      term loans, net of debt issuance costs                |   | $                   | 855,781 |   |                | $      | 1,059,377 |   |
| Obligations      under capital leases                           |   |                | 15,834  |   |                |   | 14,785 |   |
| Notes      payable, foreign credit lines and other indebtedness |   |                | 25,481  |   |                |   | 33,872 |   |
| Total      indebtedness                                         |   |                | 897,096 |   |                |   | 1,108,034 |   |
| Less:                                                           |   |                |    |   |                |   |   |   |
| Current      portion of long-term debt                          |   |                | 116,594 |   |                |   | 16,506 |   |
| Long-term      debt                                             |   | $                   | 780,502 |   |                | $      | 1,091,528 |   |

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| (In      millions, except percentages)                                    |   | Nine      Months EndedOctober      2, 2009 |    |   | Year      EndedJanuary      2, 2009 |   |
|---------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|-------------------------------------|--------|
| Effective      average interest rates paid on the revolving line ofcredit |   |                                       | 3.2     | %      |                                |   | 5.6 | % |
| Average      daily revolving line of credit balances                      |   | $                                          | — |   |                                | $      | 0.2 |   |
| Maximum      amounts outstanding at any one point in time                 |   | $                                          | 0.3     |   |                                | $      | 7.7 |   |

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| (In      millions)                                           |   | Nine      Months EndedOctober      2, 2009 |   |
|--------------------------------------------------------------|--------|--------------------------------------------|--------|
| Effective      hedge portion of the contract                 |   | $                                          | 17.9   |   |
| Unhedged      portion of the contract                        |   |                                       | 9.8    |   |
| Loss      on settlement of foreign currency forward contract |   | $                                          | 27.7   |   |

| (In      millions)                  |  Total      Carrying Value as of October 2,2009     |                                           |  Fair      Value Measurement as of October 2, 2009      |   |
|-------------------------------------|----------------------------------------------------------|------------------------------------------------|--------------------------------------------------------------|--------|
|                                |  Quoted      Prices in Active Markets(Level      1) |                                           |  Significant      Other Observable Inputs(Level      2) |   |  Significant      Unobservable Inputs (Level 3) |   |
| Interest      rate swap liabilities | $                                                        |        10.5 |                                                         | $      |        — |   | $ |        10.5 |   | $ |         — |   |
| Short-term      investments         |                                                     | 195.6                                          |                                                         |   | — |   |   | 195.6 |   |   | — |   |

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5.  EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFITPLANS

|                                |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|-------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (In      thousands)                 |   | October      2,2009     |    |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Service      cost                   |   | $                       | 1,660   |   |                   | $      | 1,343 |   |   | $ | 4,980 |   |   | $ | 4,711 |   |
| Interest      cost                  |   |                    | 4,605   |   |                   |   | 4,460 |   |   |   | 13,815 |   |   |   | 13,460 |   |
| Expected      return on plan assets |   |                    | (3,745  | )      |                   |   | (3,567 | ) |   |   | (11,235 | ) |   |   | (11,395 | ) |
| Amortization      of:               |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Prior      service costs            |   |                    | (796    | )      |                   |   | (518 | ) |   |   | (2,388 | ) |   |   | (1,554 | ) |
| Net      loss                       |   |                    | 246     |   |                   |   | 12 |   |   |   | 738 |   |   |   | 36 |   |
| Curtailment      gain (1)      |   |                    | — |   |                   |   | (860 | ) |   |   | — |   |   |   | (860 | ) |
| Net      periodic pension cost      |   | $                       | 1,970   |   |                   | $      | 870 |   |   | $ | 5,910 |   |   | $ | 4,398 |   |

|   | (1) | The      curtailment gain was due to the termination of a customer contract, which      resulted in a reduction in ourworkforce. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|-------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (In      thousands)                 |   | October      2,2009     |    |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Interest      cost                  |   | $                       | 197     |   |                   | $      | 306 |   |   | $ | 552 |   |   | $ | 930 |   |
| Expected      return on plan assets |   |                    | (115    | )      |                   |   | (129 | ) |   |   | (322 | ) |   |   | (392 | ) |
| Amortization      of:               |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                       |   |                    | — |   |                   |   | 51 |   |   |   | — |   |   |   | 154 |   |
| Net      periodic pension cost (1)  |   | $                       | 82      |   |                   | $      | 228 |   |   | $ | 230 |   |   | $ | 692 |   |

|  | (1) | We      used the current rate method in translating our net periodic pension costs      to the U.S. dollar. |
|--|-----|-------------------------------------------------------------------------------------------------------------|

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|                                |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (In      thousands)                 |   | October      2,2009     |   |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Service      cost                   |   | $                       | 16     |   |                   | $      | 17 |   |   | $ | 48 |   |   | $ | 51 |   |
| Interest      cost                  |   |                    | 637    |   |                   |   | 647 |   |   |   | 1,911 |   |   |   | 1,941 |   |
| Expected      return on plan assets |   |                    | (53    | )      |                   |   | (74 | ) |   |   | (159 | ) |   |   | (222 | ) |
| Amortization      of:               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      gain                       |   |                    | (36    | )      |                   |   | (57 | ) |   |   | (108 | ) |   |   | (171 | ) |
| Net      periodic benefit cost      |   | $                       | 564    |   |                   | $      | 533 |   |   | $ | 1,692 |   |   | $ | 1,599 |   |

6.  STOCK-BASED COMPENSATION AND STOCK REPURCHASEPROGRAM

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|                                                                                                          |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (In      millions)                                                                                            |   | October      2,2009     |   |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Stock-based      compensation expenses:                                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Restricted      stock awards and units                                                                        |   | $                       | 11.3   |   |                   | $      | 7.8 |   |   | $ | 29.3 |   |   | $ | 22.1 |   |
| Employee      stock purchase plan                                                                             |   |                    | 0.1    |   |                   |   | — |   |   |   | 0.9 |   |   |   | — |   |
| Stock-based      compensation expenses                                                                        |   | $                       | 11.4   |   |                   | $      | 7.8 |   |   | $ | 30.2 |   |   | $ | 22.1 |   |
|                                                                                                          |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total      income tax benefits recognized in our net income related to stock-based      compensation expenses |   | $                       | 4.4    |   |                   | $      | 3.0 |   |   | $ | 11.6 |   |   | $ | 8.6 |   |

| (In      millions)                                                          |   | October      2,2009 |   |   | September      26,2008 |   |
|-----------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Fair      values of shares vested                                           |   | $                   | 22.4   |   |                   | $      | 17.1 |   |
| Grant      date fair values of restricted stock awards and units    granted |   | $                   | 50.6   |   |                   | $      | 38.2 |   |

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|                              |   | Nine      Months EndedOctober      2, 2009 |      |
|-----------------------------------|--------|--------------------------------------------|-----------|
|                              |   | Shares                                     |      |   | Weighted-Average      Grant Date Fair Value |   |
| Nonvested      at January 2, 2009 |   |                                       | 2,488,531 |   |   | $ | 40.37 |   |
| Granted                           |   |                                       | 1,080,335 |   |   | $ | 46.86 |   |
| Vested                            |   |                                       | (547,882  | ) |   | $ | 40.87 |   |
| Forfeited                         |   |                                       | (160,965  | ) |   | $ | 42.20 |   |
| Nonvested      at October 2, 2009 |   |                                       | 2,860,019 |   |   | $ | 42.62 |   |

|                                                           |   | Options |      |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Contractual Term (in      years) |   |   | Aggregate      Intrinsic Value (in      millions) |   |
|----------------------------------------------------------------|--------|---------|-----------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Outstanding      at January 2, 2009                            |   |    | 1,034,604 |   |                                 | $      | 22.77  |                                                             |   |   | 4.31                                              |   |   | $ | 19.3 |   |
| Exercised                                                      |   |    | (214,054  | )      |                                 | $      | 22.20  |                                                             |   |   |                                              |   |   |   |   |   |
| Forfeited/expired/cancelled                                    |   |    | (4,540    | )      |                                 | $      | 22.12  |                                                             |   |   |                                              |   |   |   |   |   |
| Outstanding      and exercisable at  October 2, 2009 |   |    | 816,010   |   |                                 | $      | 22.92  |                                                             |   |   | 3.66                                              |   |   | $ | 15.1 |   |

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7.  SEGMENT AND RELATED INFORMATION

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|                                                         |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|--------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (In      millions)                                           |   | October      2,2009     |    |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Revenues                                                     |   |                    |    |   |                   |   |   |   |   |   |   |   |
| URS      Division                                            |   | $                       | 793.0   |   |                   | $      | 839.7 |   |   | $ | 2,436.7 |   |   | $ | 2,546.4 |   |
| EG&G      Division                                       |   |                    | 653.5   |   |                   |   | 606.8 |   |   |   | 1,940.7 |   |   |   | 1,732.2 |   |
| Washington      Division                                     |   |                    | 886.4   |   |                   |   | 1,154.8 |   |   |   | 2,810.4 |   |   |   | 3,137.6 |   |
| Inter-segment,      eliminations and other                   |   |                    | (14.4   | )      |                   |   | (13.2 | ) |   |   | (51.0 | ) |   |   | (38.1 | ) |
| Total      revenues                                          |   | $                       | 2,318.5 |   |                   | $      | 2,588.1 |   |   | $ | 7,136.8 |   |   | $ | 7,378.1 |   |
| Equity      in income of unconsolidated joint ventures       |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                            |   | $                       | 1.9     |   |                   | $      | 2.8 |   |   | $ | 5.4 |   |   | $ | 7.1 |   |
| EG&G      Division                                       |   |                    | 1.3     |   |                   |   | 1.7 |   |   |   | 4.3 |   |   |   | 5.3 |   |
| Washington      Division                                     |   |                    | 17.5    |   |                   |   | 19.8 |   |   |   | 69.3 |   |   |   | 68.6 |   |
| Total      equity in income of unconsolidated joint ventures |   | $                       | 20.7    |   |                   | $      | 24.3 |   |   | $ | 79.0 |   |   | $ | 81.0 |   |
| Contribution (1)                                             |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                            |   | $                       | 59.6    |   |                   | $      | 61.5 |   |   | $ | 196.6 |   |   | $ | 189.9 |   |
| EG&G      Division                                       |   |                    | 41.1    |   |                   |   | 43.4 |   |   |   | 116.7 |   |   |   | 104.1 |   |
| Washington      Division                                     |   |                    | 23.7    |   |                   |   | 54.9 |   |   |   | 129.0 |   |   |   | 147.2 |   |
| General      and administrative expenses (2)            |   |                    | (27.1   | )      |                   |   | (26.4 | ) |   |   | (78.5 | ) |   |   | (72.8 | ) |
| Corporate      interest expense                              |   |                    | (10.4   | )      |                   |   | (20.3 | ) |   |   | (35.7 | ) |   |   | (67.0 | ) |
| Total      contribution                                      |   | $                       | 86.9    |   |                   | $      | 113.1 |   |   | $ | 328.1 |   |   | $ | 301.4 |   |
| Operating      income                                        |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                            |   | $                       | 56.0    |   |                   | $      | 59.7 |   |   | $ | 189.7 |   |   | $ | 184.1 |   |
| EG&G      Division                                       |   |                    | 39.4    |   |                   |   | 42.0 |   |   |   | 113.4 |   |   |   | 101.0 |   |
| Washington      Division                                     |   |                    | 26.7    |   |                   |   | 62.0 |   |   |   | 147.0 |   |   |   | 165.5 |   |
| General      and administrative expenses (2)            |   |                    | (17.9   | )      |                   |   | (20.5 | ) |   |   | (56.6 | ) |   |   | (57.1 | ) |
| Total      operating income                                  |   | $                       | 104.2   |   |                   | $      | 143.2 |   |   | $ | 393.5 |   |   | $ | 393.5 |   |
| Depreciation      and amortization                           |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                            |   | $                       | 8.7     |   |                   | $      | 9.1 |   |   | $ | 25.8 |   |   | $ | 25.8 |   |
| EG&G      Division                                       |   |                    | 6.0     |   |                   |   | 4.4 |   |   |   | 17.3 |   |   |   | 16.0 |   |
| Washington      Division                                     |   |                    | 18.1    |   |                   |   | 19.8 |   |   |   | 58.0 |   |   |   | 59.8 |   |
| Corporate      and other                                     |   |                    | 1.8     |   |                   |   | 1.5 |   |   |   | 5.5 |   |   |   | 3.9 |   |
| Total      depreciation and amortization                     |   | $                       | 34.6    |   |                   | $      | 34.8 |   |   | $ | 106.6 |   |   | $ | 105.5 |   |

| (1)   | We      define segment contribution as total segment operating income minus      interest expense and noncontrolling interests attributable to that      segment, but before allocation of various segment expenses, including      stock compensation expenses.  Segment operating income      represents net income before reductions for income taxes, noncontrolling      interests and interest expense. |   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| (2)   | General      and administrative expenses represent expenses related to corporate      functions. |   |
|-----------------|--------------------------------------------------------------------------------------------------|--------|

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|                                          |   | Three      Months Ended October 2, 2009    |   |
|-----------------------------------------------|--------|--------------------------------------------|--------|
| (In      millions)                            |   | URSDivision                                |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                          | 59.6   |   |   | $ | 41.1 |   |   | $ | 23.7 |   |   | $ | (27.1 | ) |   | $ | (10.4 | ) |   | $ | — |   |   | $ | 86.9 |   |
| Noncontrolling      interests                 |   |                                       | 0.1    |   |   |   | — |   |   |   | 6.3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 6.4 |   |
| Stock-based      compensation expenses        |   |                                       | (4.0   | ) |   |   | (1.3 | ) |   |   | (3.5 | ) |   |   | 8.8 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                       | 0.3    |   |   |   | (0.4 | ) |   |   | 0.2 |   |   |   | 0.4 |   |   |   | 10.4 |   |   |   | — |   |   |   | 10.9 |   |
| Operating      income (loss)                  |   | $                                          | 56.0   |   |   | $ | 39.4 |   |   | $ | 26.7 |   |   | $ | (17.9 | ) |   | $ | — |   |   | $ | — |   |   | $ | 104.2 |   |
|                                          |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Three      Months Ended September 26, 2008 |   |
| (In      millions)                            |   | URSDivision                                |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                          | 61.5   |   |   | $ | 43.4 |   |   | $ | 54.9 |   |   | $ | (26.4 | ) |   | $ | (20.3 | ) |   | $ | — |   |   | $ | 113.1 |   |
| Noncontrolling      interests                 |   |                                       | 0.3    |   |   |   | — |   |   |   | 8.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 8.7 |   |
| Stock-based      compensation expenses        |   |                                       | (2.7   | ) |   |   | (1.0 | ) |   |   | (1.7 | ) |   |   | 5.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                       | 0.6    |   |   |   | (0.4 | ) |   |   | 0.4 |   |   |   | 0.5 |   |   |   | 20.3 |   |   |   | — |   |   |   | 21.4 |   |
| Operating      income (loss)                  |   | $                                          | 59.7   |   |   | $ | 42.0 |   |   | $ | 62.0 |   |   | $ | (20.5 | ) |   | $ | — |   |   | $ | — |   |   | $ | 143.2 |   |

|                                          |   | Nine      Months Ended October 2, 2009 |   |
|-----------------------------------------------|--------|----------------------------------------|--------|
| (In      millions)                            |   | URSDivision                            |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                      | 196.6  |   |   | $ | 116.7 |   |   | $ | 129.0 |   |   | $ | (78.5 | ) |   | $ | (35.7 | ) |   | $ | — |   |   | $ | 328.1 |   |
| Noncontrolling      interests                 |   |                                   | 2.3    |   |   |   | — |   |   |   | 25.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 27.7 |   |
| Stock-based      compensation expenses        |   |                                   | (10.3  | ) |   |   | (3.0 | ) |   |   | (7.9 | ) |   |   | 21.2 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                   | 1.1    |   |   |   | (0.3 | ) |   |   | 0.5 |   |   |   | 0.7 |   |   |   | 35.7 |   |   |   | — |   |   |   | 37.7 |   |
| Operating      income (loss)                  |   | $                                      | 189.7  |   |   | $ | 113.4 |   |   | $ | 147.0 |   |   | $ | (56.6 | ) |   | $ | — |   |   | $ | — |   |   | $ | 393.5 |   |
|                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                          |   | Nine      Months Ended September 26, 2008 |   |
|-----------------------------------------------|--------|-------------------------------------------|--------|
| (In      millions)                            |   | URSDivision                               |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                         | 189.9  |   |   | $ | 104.1 |   |   | $ | 147.2 |   |   | $ | (72.8 | ) |   | $ | (67.0 | ) |   | $ | — |   |   | $ | 301.4 |   |
| Noncontrolling      interests                 |   |                                      | 0.3    |   |   |   | — |   |   |   | 21.8 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 22.1 |   |
| Stock-based      compensation expenses        |   |                                      | (7.7   | ) |   |   | (2.7 | ) |   |   | (4.5 | ) |   |   | 14.9 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                      | 1.6    |   |   |   | (0.4 | ) |   |   | 1.0 |   |   |   | 0.8 |   |   |   | 67.0 |   |   |   | — |   |   |   | 70.0 |   |
| Operating      income (loss)                  |   | $                                         | 184.1  |   |   | $ | 101.0 |   |   | $ | 165.5 |   |   | $ | (57.1 | ) |   | $ | — |   |   | $ | — |   |   | $ | 393.5 |   |

| (In      millions)       |   | October      2, 2009 |     |   | January      2, 2009 |   |
|--------------------------|--------|----------------------|----------|--------|----------------------|--------|
| URS      Division        |   | $                    | 1,680.4  |   |                 | $      | 1,615.3 |   |
| EG&G      Division   |   |                 | 1,517.7  |   |                 |   | 1,487.6 |   |
| Washington      Division |   |                 | 3,536.2  |   |                 |   | 3,596.9 |   |
| Corporate                |   |                 | 5,250.5  |   |                 |   | 5,059.3 |   |
| Eliminations             |   |                 | (4,915.3 | )      |                 |   | (4,757.9 | ) |
| Total      assets        |   | $                    | 7,069.5  |   |                 | $      | 7,001.2 |   |

| (In      millions)                                                         |   | October      2, 2009 |   |   | January      2, 2009 |   |
|----------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| URS      Division                                                          |   | $                    | 10.9   |   |                 | $      | 10.5 |   |
| EG&G      Division                                                     |   |                 | 3.2    |   |                 |   | 6.1 |   |
| Washington      Division                                                   |   |                 | 76.2   |   |                 |   | 253.0 |   |
| Total      investments in and advances to unconsolidated joint    ventures |   | $                    | 90.3   |   |                 | $      | 269.6 |   |

|                |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|---------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (In      millions)  |   | October      2,2009     |    |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| Revenues            |   |                    |    |   |                   |   |   |   |   |   |   |   |
| United      States  |   | $                       | 2,133.2 |   |                   | $      | 2,351.6 |   |   | $ | 6,527.1 |   |   | $ | 6,701.3 |   |
| International       |   |                    | 188.6   |   |                   |   | 242.6 |   |   |   | 619.8 |   |   |   | 693.3 |   |
| Eliminations        |   |                    | (3.3    | )      |                   |   | (6.1 | ) |   |   | (10.1 | ) |   |   | (16.5 | ) |
| Total      revenues |   | $                       | 2,318.5 |   |                   | $      | 2,588.1 |   |   | $ | 7,136.8 |   |   | $ | 7,378.1 |   |

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| (In      millions)                             |   | October      2,2009 |   |   | January      2,2009 |   |
|------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
| Property      and equipment at cost, net       |   |                |   |   |                |   |
| United      States                             |   | $                   | 230.6  |   |                | $      | 257.1 |   |
| International:                                 |   |                |   |   |                |   |   |   |
| Bolivia      (1)                          |   |                | 0.1    |   |                |   | 45.5 |   |
| Other      foreign countries                   |   |                | 40.6   |   |                |   | 44.5 |   |
| Total      international                       |   |                | 40.7   |   |                |   | 90.0 |   |
| Total      property and equipment at cost, net |   | $                   | 271.3  |   |                | $      | 347.1 |   |

| (1)   | During      the third quarter of 2009, we sold substantially all of our assets located      in Bolivia to our former client following their termination of our mining      contract.  See further discussion under the “Interim and Annual      Goodwill Impairment Review” section of Note 1, “Business, Basis of      Presentation, and Accounting Policies.” |   |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|                     |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|--------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (In      millions)       |   | October      2,2009     |   |   | September      26,2008 |   |   | October      2,2009 |   |   | September      26,2008 |   |
| The      U.S. Army (1)   |   |                    |   |   |                   |   |   |   |   |   |   |   |
| URS      Division        |   | $                       | 38.0   |   |                   | $      | 26.4 |   |   | $ | 106.9 |   |   | $ | 81.9 |   |
| EG&G      Division   |   |                    | 342.5  |   |                   |   | 349.7 |   |   |   | 1,035.9 |   |   |   | 1,056.0 |   |
| Washington      Division |   |                    | 31.4   |   |                   |   | 34.8 |   |   |   | 81.8 |   |   |   | 93.6 |   |
| Total      U.S. Army     |   | $                       | 411.9  |   |                   | $      | 410.9 |   |   | $ | 1,224.6 |   |   | $ | 1,231.5 |   |

| (1)   | The      U.S. Army includes U.S. Army Corps ofEngineers. |
|-----------------|----------------------------------------------------------|

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8.  COMMITMENTS AND CONTINGENCIES

| ·   | Saudi      Arabia:  One of our wholly owned subsidiaries, LSI,      provided aircraft maintenance support services on F-5 aircraft under      contracts (the “F-5 Contract”) with a Saudi Arabian government ministry      (the “Ministry”).  LSI completed its operational performance      under the F-5 Contract in November 2000 and the Ministry has yet to pay a      $12.2 million account receivable owed to LSI for the services under the      contract.  In addition, in 2004, the Ministry drew a payment      under a performance bond issued by LSI amounting to approximately $5.6      million that was outstanding under the F-5 Contract.  The      following legal proceedings ensued: |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Lebanon:  Our      1999 acquisition of Dames and Moore Group, Inc. included the acquisition      of a wholly owned subsidiary, Radian International, LLC      (“Radian”).  Prior to the acquisition, Radian entered into a      contract with the Lebanese Company for the Development and Reconstruction      of Beirut Central District, S.A.L (“Solidere”).  Under the      contract, Radian was to provide environmental remediation services at the      Normandy Landfill site located in Beirut, Lebanon.  Radian      subcontracted a portion of these services to Mouawad – Edde SARL (“Mouawad      – Edde”).  Radian, Solidere and Mouawad Edde asserted various      claims related to the project.  Radian settled the Solidere      claims in June 2008 and the Mouawad Edde claims in August      2008.  Portions of the Solidere settlement were paid by Zurich      Insurance Company, as successor in interest to Alpina Insurance Company,      American International Specialty Lines Insurance Company and Radian’s      other insurers.  Radian is currently in settlement negotiations      with its insurers to recover amounts due under applicable insurance      policies.  Radian is seeking recovery of approximately $30.0      million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tampa-Hillsborough County      Expressway Authority:  In 1999, URS Corporation Southern,      our wholly owned subsidiary, entered into an agreement with the      Tampa-Hillsborough County Expressway Authority (the “Authority”) to      provide foundation design, project oversight and other services in      connection with the construction of the Lee Roy Selmon Elevated Expressway      structure (the “Expressway”) in Tampa, Florida.  Also, URS      Holdings, Inc., our wholly owned subsidiary, entered into a subcontract      agreement with an unrelated third party to provide geotechnical services      in connection with the construction of roads to access the      Expressway.  In 2004, during construction of the elevated      structure, one pier subsided substantially, causing significant damage to      a segment of the elevated structure, though no significant injuries      occurred as a result of the incident.  The Authority has      completed remediation of theExpressway. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Rocky Mountain      Arsenal:  In January 2002, URS Group, Inc., our wholly      owned subsidiary, was awarded a contract by Foster Wheeler Environmental,      Inc., to perform, among other things, foundation demolition and      remediation of contaminated soil at the Rocky Mountain Arsenal in      Colorado.  In October 2004, URS Group, Inc. filed a complaint      asserting a breach of contract seeking recovery of the cost overruns      against Foster Wheeler Environmental, Inc. and Tetra Tech FW, Inc. both      subsidiaries of Tetra Tech, Inc. (“TTFW”), in District Court for the      County of Denver in the State of Colorado.  In June 2006, the      District Court issued a $1.1 million judgment against TTFW, granting some      of URS Group, Inc.’s claims, but denying the largest claim.  URS      Group, Inc. appealed the judgment to the Colorado Court of Appeals in June      2006.  The Court of Appeals found that TTFW possessed      information at the time of bidding that it did not disclose to bidders and      issued a unanimous decision in favor of URS Group, Inc. in February 2008,      which remanded the matter to the trial court for further      proceedings.  On April 23, 2008, TTFW filed a petition for      review with the Colorado Supreme Court.  The Colorado Supreme      Court denied that petition, and the matter has been remanded to the trial      court for proceedings consistent with the findings of the Court of      Appeals. |
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| ·   | Minneapolis      Bridge:  On August 1, 2007, the I-35W Bridge in      Minneapolis, Minnesota collapsed resulting in 13 deaths, numerous injuries      and substantial property loss.  In 2003, the Minnesota      Department of Transportation retained URS Corporation (Nevada), our wholly      owned subsidiary, to provide specific engineering analyses of components      of the I-35W Bridge.  URS Corporation (Nevada) issued draft      reports pursuant to this engagement.  URS Corporation (Nevada)’s      services to the Minnesota Department of Transportation were ongoing at the      time of the collapse.  The National Transportation Safety Board      final report on the bridge collapse determined that the probable cause of      the collapse was inadequate load capacity due to an error by the original      bridge designer that resulted in gusset plate failures due to the      increased bridge weight from previous modifications as well as increased      traffic and concentrated construction loads on the bridge on the day of      the collapse.  URS Corporation (Nevada) was not involved in the      original design or construction of the I-35W Bridge, nor were they      involved in any of the maintenance and construction work being performed      on the bridge when the collapseoccurred. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 130 Liberty      Street:  On August 18, 2007, two New York City firemen      lost their lives and others were injured fighting a fire at a skyscraper      undergoing decontamination and deconstruction at 130 Liberty Street in New      York City.  One of our wholly owned subsidiaries, URS      Corporation – New York, had been retained before the accident by the 130      Liberty Street property owner to advise, monitor and report on the general      contractor’s performance as well as its compliance with the project’s      contractual requirements.  In August 2007, the Manhattan      District Attorney served subpoenas related to this accident on the      property owner, URS Corporation - New York, the general contractor and its      principal subcontractors, as well as the City of New York.  In      December 2008, the District Attorney issued criminal indictments against      an employee of the general contractor responsible for safety at the      project, its principal subcontractor and some of that subcontractor’s      employees; however, URS Corporation – New York was not      indicted. |
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| ·   | USAID Egyptian      Projects:  In March 2003, WGI, the parent company      acquired by us on November 15, 2007, was notified by the Department of      Justice that the federal government was considering civil litigation      against WGI for potential violations of the U.S. Agency for International      Development (“USAID”) source, origin, and nationality regulations in      connection with five of WGI’s USAID-financed host-country projects located      in Egypt beginning in the early 1990s.  In November 2004, the      federal government filed an action in the United States District Court for      the District of Idaho against WGI and Contrack International, Inc., an      Egyptian construction company, asserting violations under the Federal      False Claims Act, the Federal Foreign Assistance Act of 1961, and common      law theories of payment by mistake and unjust enrichment.  The      federal government seeks damages and civil penalties for violations of the      statutes as well as a refund of all amounts paid under the specified      contracts of approximately $373.0 million.  WGI denies any      liability in the action and contests the federal government’s damage      allegations and its entitlement to any recovery.  All USAID      projects under the contracts have been completed and are fully      operational. |
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| ·   | New Orleans Levee Failure      Class Action Litigation:  From July 1999 through May      2005, Washington Group International, Inc., an Ohio company (“WGI Ohio”),      a wholly owned subsidiary acquired by us on November 15, 2007, performed      demolition, site preparation, and environmental remediation services for      the U.S. Army Corps of Engineers on the east bank of the Inner Harbor      Navigation Canal (the “Industrial Canal”) in New Orleans,      Louisiana.  On August 29, 2005, Hurricane Katrina devastated New      Orleans.  The storm surge created by the hurricane overtopped      the Industrial Canal levee and floodwall, flooding the Lower Ninth Ward      and other parts of the city. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | SR-125:  WGI      Ohio has a 50% interest in a joint venture that has performed a $401      million fixed-price highway and toll road project in California that is      fully operational and essentially complete as of October 2,      2009.  Prior to the acquisition, WGI Ohio recorded significant      losses on the project resulting from various developments, including final      design and other customer specifications, state regulatory agency      requirements, material quantity and cost growth, higher subcontractor and      labor costs, and the impact of schedule delays.  The joint      venture is actively pursuing reimbursement of significant highway and toll      road project claims against the project owner, based on breach of      contract, disputed unilateral deductive changes from the project owner,      and the recovery of liquidated damages withheld by the project      owner.  The highway claims were initiated in the Superior Court      of San Diego County (“Superior Court”) in July 2006 and the toll road      claims were initiated in arbitration, under JAMS arbitration rules, in      July 2005. |
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| ·   | Common Sulfur      Project:  One of our wholly owned subsidiaries, WGI –      Middle East, Inc., whose parent company, WGI, was acquired by us on      November 15, 2007, together with a consortium partner, have contracted      under a fixed-price arrangement to engineer, procure and construct a      sulfur processing facility located in Qatar.  The completed      project will gather and process sulfur produced by new liquid natural gas      processing facilities also under construction.  The project has      experienced cost increases and schedule delays.  The contract      gives the customer the right to assess liquidated damages of approximately      $25 million against the consortium if various project milestones are not      met.  If liquidated damages are assessed, a significant portion      may be attributable to WGI – Middle East,Inc. |
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| (In      thousands)                               |   | Three      Months EndedOctober      2, 2009 |   |   | Nine      Months EndedOctober      2, 2009 |   |
|---------------------------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------------------|--------|
| Restructuring      reserve at beginning of period |   | $                                           | 8,025  |   |                                       | $      | 13,262 |   |
| Payments                                          |   |                                        | (2,373 | )      |                                       |   | (6,394 | ) |
| Adjustments                                       |   |                                        | (348   | )      |                                       |   | (1,564 | ) |
| Balance      as of October 2, 2009                |   | $                                           | 5,304  |   |                                       | $      | 5,304 |   |

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ITEM 2.  MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS

75
; thecondensed consolidated financial statements and notes thereto contained in PartI – Item 1, “Financial Statements;” and the Consolidated Financial Statementsincluded in our Annual Report on Form 10-K for the fiscal year ended January 2,2009, which was previously filed with the Securities and Exchange Commission(“SEC”).

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|                           |   | As      of          |   |
|--------------------------------|--------|---------------------|--------|
| (In      billions)             |   | October      2,2009 |   |   | January      2,2009 |   |
| Backlog:                       |   |                |   |   |   |   |
| Power                          |   | $                   | 1.4    |   |   | $ | 1.8 |   |
| Infrastructure                 |   |                | 2.7    |   |   |   | 2.3 |   |
| Industrial      and commercial |   |                | 1.3    |   |   |   | 2.9 |   |
| Federal                        |   |                | 12.5   |   |   |   | 10.2 |   |
| Total      backlog             |   | $                   | 17.9   |   |   | $ | 17.2 |   |

| (In      billions)                    |   | URSDivision |   |   | EG&GDivision |   |   | Washington      Division |   |   | Total  |   |
|---------------------------------------|--------|-------------|--------|--------|------------------|--------|--------|--------------------------|--------|--------|--------|--------|
| As of October 2, 2009                 |   |        |   |   |             |   |   |                     |   |   |   |   |
| Backlog                               |   | $           | 2.8    |   |             | $      | 7.6    |                     |   | $      | 7.5    |   |   | $ | 17.9 |   |
| Option      years                     |   |        | 0.4    |   |             |   | 2.2    |                     |   |   | 2.3    |   |   |   | 4.9 |   |
| Indefinite      delivery contracts    |   |        | 4.2    |   |             |   | 1.6    |                     |   |   | 0.9    |   |   |   | 6.7 |   |
| Total      book of business           |   | $           | 7.4    |   |             | $      | 11.4   |                     |   | $      | 10.7   |   |   | $ | 29.5 |   |
|                                  |   |        |   |   |             |   |   |                     |   |   |   |   |   |   |   |   |
| As of January 2, 2009                 |   |        |   |   |             |   |   |                     |   |   |   |   |   |   |   |   |
| Backlog                               |   | $           | 2.8    |   |             | $      | 7.7    |                     |   | $      | 6.7    |   |   | $ | 17.2 |   |
| Option      years                     |   |        | 0.5    |   |             |   | 2.2    |                     |   |   | 1.6    |   |   |   | 4.3 |   |
| Indefinite      delivery contracts    |   |        | 4.0    |   |             |   | 2.1    |                     |   |   | 1.5    |   |   |   | 7.6 |   |
| Total      book of business (1)  |   | $           | 7.3    |   |             | $      | 12.0   |                     |   | $      | 9.8    |   |   | $ | 29.1 |   |

| (1)   | We      adjusted our book of business as of January 2, 2009 to exclude      designations as we ceased reporting them within our book of business      starting in the first quarter of2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                           |   | Three      Months Ended |     |
|--------------------------------------------------------------------------------|--------|-------------------------|----------|
| (In      millions, except percentages and per share amounts)                   |   | October      2,2009     |     |   | September      26,2008 |   |   | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
| Revenues                                                                       |   | $                       | 2,318.5  |   |   | $ | 2,588.1 |   |   | $ | (269.6 | ) |   |   | (10.4 | %) |
| Cost      of revenues                                                          |   |                    | (2,217.1 | ) |   |   | (2,448.7 | ) |   |   | (231.6 | ) |   |   | (9.5 | %) |
| General      and administrative expenses                                       |   |                    | (17.9    | ) |   |   | (20.5 | ) |   |   | (2.6 | ) |   |   | (12.7 | %) |
| Equity      in income of unconsolidated joint ventures                         |   |                    | 20.7     |   |   |   | 24.3 |   |   |   | (3.6 | ) |   |   | (14.8 | %) |
| Operating      income                                                          |   |                    | 104.2    |   |   |   | 143.2 |   |   |   | (39.0 | ) |   |   | (27.2 | %) |
| Interest      expense                                                          |   |                    | (11.0    | ) |   |   | (21.4 | ) |   |   | (10.4 | ) |   |   | (48.6 | %) |
| Income      before income taxes                                                |   |                    | 93.2     |   |   |   | 121.8 |   |   |   | (28.6 | ) |   |   | (23.5 | %) |
| Income      tax expense                                                        |   |                    | (24.6    | ) |   |   | (51.0 | ) |   |   | (26.4 | ) |   |   | (51.8 | %) |
| Net      income                                                                |   |                    | 68.6     |   |   |   | 70.8 |   |   |   | (2.2 | ) |   |   | (3.1 | %) |
| Noncontrolling      interest in income of consolidated subsidiaries, net oftax |   |                    | (3.8     | ) |   |   | (5.0 | ) |   |   | (1.2 | ) |   |   | (24.0 | %) |
| Net      income attributable to URS                                            |   | $                       | 64.8     |   |   | $ | 65.8 |   |   | $ | (1.0 | ) |   |   | (1.5 | %) |
|                                                                           |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                                                |   | $                       | .79      |   |   | $ | .77 |   |   | $ | .02 |   |   |   | 2.6 | % |

|                                     |   | Three      Months Ended |    |
|------------------------------------------|--------|-------------------------|---------|
| (In      millions, except percentages)   |   | October      2,2009     |    |   | September      26,2008 |   |   | Increase      (Decrease) |   |   | Percentage      Increase (Decrease) |   |
| Revenues                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Power      sector                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   | $                       | 28.8    |   |   | $ | 53.7 |   |   | $ | (24.9 | ) |   |   | (46.4 | %) |
| EG&G      Division                   |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                    | 296.9   |   |   |   | 402.6 |   |   |   | (105.7 | ) |   |   | (26.3 | %) |
| Power      Total                         |   |                    | 325.7   |   |   |   | 456.3 |   |   |   | (130.6 | ) |   |   | (28.6 | %) |
| Infrastructure      sector               |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                    | 354.4   |   |   |   | 362.0 |   |   |   | (7.6 | ) |   |   | (2.1 | %) |
| EG&G      Division                   |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                    | 53.4    |   |   |   | 82.3 |   |   |   | (28.9 | ) |   |   | (35.1 | %) |
| Infrastructure      Total                |   |                    | 407.8   |   |   |   | 444.3 |   |   |   | (36.5 | ) |   |   | (8.2 | %) |
| Federal      sector                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                    | 171.2   |   |   |   | 139.9 |   |   |   | 31.3 |   |   |   | 22.4 | % |
| EG&G      Division                   |   |                    | 652.0   |   |   |   | 606.1 |   |   |   | 45.9 |   |   |   | 7.6 | % |
| Washington      Division                 |   |                    | 301.8   |   |   |   | 166.6 |   |   |   | 135.2 |   |   |   | 81.2 | % |
| Federal      Total                       |   |                    | 1,125.0 |   |   |   | 912.6 |   |   |   | 212.4 |   |   |   | 23.3 | % |
| Industrial      and Commercial sector    |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                    | 228.7   |   |   |   | 279.8 |   |   |   | (51.1 | ) |   |   | (18.3 | %) |
| EG&G      Division                   |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                    | 231.3   |   |   |   | 495.1 |   |   |   | (263.8 | ) |   |   | (53.3 | %) |
| Industrial      and Commercial Total     |   |                    | 460.0   |   |   |   | 774.9 |   |   |   | (314.9 | ) |   |   | (40.6 | %) |
| Total      revenues, net of eliminations |   | $                       | 2,318.5 |   |   | $ | 2,588.1 |   |   | $ | (269.6 | ) |   |   | (10.4 | %) |

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| (In      millions, except percentages)                                                                   |                           | Revenues |    |   | Cost      of Revenues |   |     | General      and Administrative Expenses |   |   | Equity      in Income of Unconsolidated Joint Ventures |   |   | Operating      Income |    |
|----------------------------------------------------------------------------------------------------------|--------------------------------|----------|---------|--------|-----------------------|--------|----------|------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------|---------|
|                                                                                                     |                           |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |
| Three months ended October 2,      2009                                                                  |                           |     |    |   |
| URS      Division                                                                                        |                           | $        | 793.0   |   |                  | $      | (738.9   | )                                        |   | $      | —                                                |   |   | $                     | 1.9     |   |   | $ | 56.0 |   |
| EG&G      Division                                                                                   |                           |     | 653.5   |   |                  |   | (615.4   | )                                        |   |   | —                                                |   |   |                  | 1.3     |   |   |   | 39.4 |   |
| Washington      Division                                                                                 |                           |     | 886.4   |   |                  |   | (877.2   | )                                        |   |   | —                                                |   |   |                  | 17.5    |   |   |   | 26.7 |   |
| Eliminations                                                                                             |                           |     | (14.4   | )      |                  |   | 14.4     |                                     |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                                |                           |     | — |   |                  |   | —  |                                     |   |   | (17.9                                                  | )      |   |                  | — |   |   |   | (17.9 | ) |
| Total                                                                                                    |                           | $        | 2,318.5 |   |                  | $      | (2,217.1 | )                                        |   | $      | (17.9                                                  | )      |   | $                     | 20.7    |   |   | $ | 104.2 |   |
|                                                                                                     |                           |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Three months ended September 26,      2008                                                               |       |     |    |   |
| URS      Division                                                                                        |                           | $        | 839.7   |   |                  | $      | (782.8   | )                                        |   | $      | —                                                |   |   | $                     | 2.8     |   |   | $ | 59.7 |   |
| EG&G      Division                                                                                   |                           |     | 606.8   |   |                  |   | (566.5   | )                                        |   |   | —                                                |   |   |                  | 1.7     |   |   |   | 42.0 |   |
| Washington      Division                                                                                 |                           |     | 1,154.8 |   |                  |   | (1,112.6 | )                                        |   |   | —                                                |   |   |                  | 19.8    |   |   |   | 62.0 |   |
| Eliminations                                                                                             |                           |     | (13.2   | )      |                  |   | 13.2     |                                     |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                                |                           |     | — |   |                  |   | —  |                                     |   |   | (20.5                                                  | )      |   |                  | — |   |   |   | (20.5 | ) |
| Total                                                                                                    |                           | $        | 2,588.1 |   |                  | $      | (2,448.7 | )                                        |   | $      | (20.5                                                  | )      |   | $                     | 24.3    |   |   | $ | 143.2 |   |
|                                                                                                     |                           |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Increase (decrease) for the three months ended      October 2, 2009 and September 26, 2008               |                           |     |    |   |
| URS      Division                                                                                        |                           | $        | (46.7   | )      |                  | $      | (43.9    | )                                        |   | $      | —                                                |   |   | $                     | (0.9    | ) |   | $ | (3.7 | ) |
| EG&G      Division                                                                                   |                           |     | 46.7    |   |                  |   | 48.9     |                                     |   |   | —                                                |   |   |                  | (0.4    | ) |   |   | (2.6 | ) |
| Washington      Division                                                                                 |                           |     | (268.4  | )      |                  |   | (235.4   | )                                        |   |   | —                                                |   |   |                  | (2.3    | ) |   |   | (35.3 | ) |
| Eliminations                                                                                             |                           |     | (1.2    | )      |                  |   | (1.2     | )                                        |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                                |                           |     | — |   |                  |   | —  |                                     |   |   | (2.6                                                   | )      |   |                  | — |   |   |   | 2.6 |   |
| Total                                                                                                    |                           | $        | (269.6  | )      |                  | $      | (231.6   | )                                        |   | $      | (2.6                                                   | )      |   | $                     | (3.6    | ) |   | $ | (39.0 | ) |
|                                                                                                     |                           |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Percentage increase (decrease) for the three      months ended October 2, 2009 and September 26,    2008 |                           |     |    |   |
| URS      Division                                                                                        |                           |     | (5.6    | %)     |                  |   | (5.6     | %)                                       |   |   | —                                                |   |   |                  | (32.1   | %) |   |   | (6.2 | %) |
| EG&G      Division                                                                                   |                           |     | 7.7     | %      |                  |   | 8.6      | %                                        |   |   | —                                                |   |   |                  | (23.5   | %) |   |   | (6.2 | %) |
| Washington      Division                                                                                 |                           |     | (23.2   | %)     |                  |   | (21.2    | %)                                       |   |   | —                                                |   |   |                  | (11.6   | %) |   |   | (56.9 | %) |
| Eliminations                                                                                             |                           |     | 9.1     | %      |                  |   | 9.1      | %                                        |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                                |                           |     | — |   |                  |   | —  |                                     |   |   | (12.7                                                  | %)     |   |                  | — |   |   |   | (12.7 | %) |
| Total                                                                                                    |                           |     | (10.4   | %)     |                  |   | (9.5     | %)                                       |   |   | (12.7                                                  | %)     |   |                  | (14.8   | %) |   |   | (27.2 | %) |

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|                                                                           |   | Nine      Months Ended |     |
|--------------------------------------------------------------------------------|--------|------------------------|----------|
| (In      millions, except percentages and per share amounts)                   |   | October      2,2009    |     |   | September      26,2008 |   |   | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
| Revenues                                                                       |   | $                      | 7,136.8  |   |   | $ | 7,378.1 |   |   | $ | (241.3 | ) |   |   | (3.3 | %) |
| Cost      of revenues                                                          |   |                   | (6,765.7 | ) |   |   | (7,008.5 | ) |   |   | (242.8 | ) |   |   | (3.5 | %) |
| General      and administrative expenses                                       |   |                   | (56.6    | ) |   |   | (57.1 | ) |   |   | (0.5 | ) |   |   | (0.9 | %) |
| Equity      in income of unconsolidated joint ventures                         |   |                   | 79.0     |   |   |   | 81.0 |   |   |   | (2.0 | ) |   |   | (2.5 | %) |
| Operating      income                                                          |   |                   | 393.5    |   |   |   | 393.5 |   |   |   | — |   |   |   | — |   |
| Interest      expense                                                          |   |                   | (37.6    | ) |   |   | (70.1 | ) |   |   | (32.5 | ) |   |   | (46.4 | %) |
| Other      income, net                                                         |   |                   | 47.9     |   |   |   | — |   |   |   | 47.9 |   |   |   | N/M |   |
| Income      before income taxes                                                |   |                   | 403.8    |   |   |   | 323.4 |   |   |   | 80.4 |   |   |   | 24.9 | % |
| Income      tax expense                                                        |   |                   | (151.9   | ) |   |   | (136.0 | ) |   |   | 15.9 |   |   |   | 11.7 | % |
| Net      income                                                                |   |                   | 251.9    |   |   |   | 187.4 |   |   |   | 64.5 |   |   |   | 34.4 | % |
| Noncontrolling      interest in income of consolidated subsidiaries, net oftax |   |                   | (16.5    | ) |   |   | (12.8 | ) |   |   | 3.7 |   |   |   | 28.9 | % |
| Net      income attributable to URS                                            |   | $                      | 235.4    |   |   | $ | 174.6 |   |   | $ | 60.8 |   |   |   | 34.8 | % |
|                                                                           |   |                   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                                                |   | $                      | 2.87     |   |   | $ | 2.06 |   |   | $ | .81 |   |   |   | 39.3 | % |

|                                     |   | Nine      Months Ended |    |
|------------------------------------------|--------|------------------------|---------|
| (In      millions, except percentages)   |   | October      2,2009    |    |   | September      26,2008 |   |   | Increase      (Decrease) |   |   | Percentage      Increase (Decrease) |   |
| Revenues                                 |   |                   |    |   |   |   |   |   |   |   |   |   |
| Power      sector                        |   |                   |    |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   | $                      | 110.6   |   |   | $ | 202.6 |   |   | $ | (92.0 | ) |   |   | (45.4 | %) |
| EG&G      Division                   |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                   | 995.8   |   |   |   | 1,160.6 |   |   |   | (164.8 | ) |   |   | (14.2 | %) |
| Power      Total                         |   |                   | 1,106.4 |   |   |   | 1,363.2 |   |   |   | (256.8 | ) |   |   | (18.8 | %) |
| Infrastructure      sector               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                   | 1,083.2 |   |   |   | 1,063.5 |   |   |   | 19.7 |   |   |   | 1.9 | % |
| EG&G      Division                   |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                   | 190.1   |   |   |   | 253.5 |   |   |   | (63.4 | ) |   |   | (25.0 | %) |
| Infrastructure      Total                |   |                   | 1,273.3 |   |   |   | 1,317.0 |   |   |   | (43.7 | ) |   |   | (3.3 | %) |
| Federal      sector                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                   | 516.3   |   |   |   | 444.1 |   |   |   | 72.2 |   |   |   | 16.3 | % |
| EG&G      Division                   |   |                   | 1,937.9 |   |   |   | 1,730.6 |   |   |   | 207.3 |   |   |   | 12.0 | % |
| Washington      Division                 |   |                   | 635.1   |   |   |   | 390.3 |   |   |   | 244.8 |   |   |   | 62.7 | % |
| Federal      Total                       |   |                   | 3,089.3 |   |   |   | 2,565.0 |   |   |   | 524.3 |   |   |   | 20.4 | % |
| Industrial      and Commercial sector    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                        |   |                   | 688.1   |   |   |   | 822.5 |   |   |   | (134.4 | ) |   |   | (16.3 | %) |
| EG&G      Division                   |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington      Division                 |   |                   | 979.7   |   |   |   | 1,310.4 |   |   |   | (330.7 | ) |   |   | (25.2 | %) |
| Industrial      and Commercial Total     |   |                   | 1,667.8 |   |   |   | 2,132.9 |   |   |   | (465.1 | ) |   |   | (21.8 | %) |
| Total      revenues, net of eliminations |   | $                      | 7,136.8 |   |   | $ | 7,378.1 |   |   | $ | (241.3 | ) |   |   | (3.3 | %) |

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ReportingSegments

| (In      millions, except percentages)                                                               |   | Revenues |    |   | Cost      of Revenues |   |     | General      and Administrative Expenses |   |   | Equity      in Income of Unconsolidated Joint Ventures |   |   | Operating      Income |    |
|------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------------------|--------|----------|------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------|---------|
|                                                                                                 |   |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |
| Nine months ended October 2,      2009                                                               |   |     |    |   |
| URS      Division                                                                                    |   | $        | 2,436.7 |   |                  | $      | (2,252.4 | )                                        |   | $      | —                                                |   |   | $                     | 5.4     |   |   | $ | 189.7 |   |
| EG&G      Division                                                                               |   |     | 1,940.7 |   |                  |   | (1,831.6 | )                                        |   |   | —                                                |   |   |                  | 4.3     |   |   |   | 113.4 |   |
| Washington      Division                                                                             |   |     | 2,810.4 |   |                  |   | (2,732.7 | )                                        |   |   | —                                                |   |   |                  | 69.3    |   |   |   | 147.0 |   |
| Eliminations                                                                                         |   |     | (51.0   | )      |                  |   | 51.0     |                                     |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                            |   |     | — |   |                  |   | —  |                                     |   |   | (56.6                                                  | )      |   |                  | — |   |   |   | (56.6 | ) |
| Total                                                                                                |   | $        | 7,136.8 |   |                  | $      | (6,765.7 | )                                        |   | $      | (56.6                                                  | )      |   | $                     | 79.0    |   |   | $ | 393.5 |   |
|                                                                                                 |   |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Nine months ended September 26,      2008                                                            |   |     |    |   |
| URS      Division                                                                                    |   | $        | 2,546.4 |   |                  | $      | (2,369.4 | )                                        |   | $      | —                                                |   |   | $                     | 7.1     |   |   | $ | 184.1 |   |
| EG&G      Division                                                                               |   |     | 1,732.2 |   |                  |   | (1,636.5 | )                                        |   |   | —                                                |   |   |                  | 5.3     |   |   |   | 101.0 |   |
| Washington      Division                                                                             |   |     | 3,137.6 |   |                  |   | (3,040.7 | )                                        |   |   | —                                                |   |   |                  | 68.6    |   |   |   | 165.5 |   |
| Eliminations                                                                                         |   |     | (38.1   | )      |                  |   | 38.1     |                                     |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                            |   |     | — |   |                  |   | —  |                                     |   |   | (57.1                                                  | )      |   |                  | — |   |   |   | (57.1 | ) |
| Total                                                                                                |   | $        | 7,378.1 |   |                  | $      | (7,008.5 | )                                        |   | $      | (57.1                                                  | )      |   | $                     | 81.0    |   |   | $ | 393.5 |   |
|                                                                                                 |   |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Increase (decrease) for the nine months ended      October 2, 2009 and September 26, 2008            |   |     |    |   |
| URS      Division                                                                                    |   | $        | (109.7  | )      |                  | $      | (117.0   | )                                        |   | $      | —                                                |   |   | $                     | (1.7    | ) |   | $ | 5.6 |   |
| EG&G      Division                                                                               |   |     | 208.5   |   |                  |   | 195.1    |                                     |   |   | —                                                |   |   |                  | (1.0    | ) |   |   | 12.4 |   |
| Washington      Division                                                                             |   |     | (327.2  | )      |                  |   | (308.0   | )                                        |   |   | —                                                |   |   |                  | 0.7     |   |   |   | (18.5 | ) |
| Eliminations                                                                                         |   |     | (12.9   | )      |                  |   | (12.9    | )                                        |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                            |   |     | — |   |                  |   | —  |                                     |   |   | (0.5                                                   | )      |   |                  | — |   |   |   | 0.5 |   |
| Total                                                                                                |   | $        | (241.3  | )      |                  | $      | (242.8   | )                                        |   | $      | (0.5                                                   | )      |   | $                     | (2.0    | ) |   | $ | — |   |
|                                                                                                 |   |     |    |   |                  |   |     |                                     |   |   |                                                   |   |   |                  |    |   |   |   |   |   |
| Percentage increase (decrease) for the nine months      ended October 2, 2009 and September 26, 2008 |   |     |    |   |
| URS      Division                                                                                    |   |     | (4.3    | %)     |                  |   | (4.9     | %)                                       |   |   | —                                                |   |   |                  | (23.9   | %) |   |   | 3.0 | % |
| EG&G      Division                                                                               |   |     | 12.0    | %      |                  |   | 11.9     | %                                        |   |   | —                                                |   |   |                  | (18.9   | %) |   |   | 12.3 | % |
| Washington      Division                                                                             |   |     | (10.4   | %)     |                  |   | (10.1    | %)                                       |   |   | —                                                |   |   |                  | 1.0     | % |   |   | (11.2 | %) |
| Eliminations                                                                                         |   |     | 33.9    | %      |                  |   | 33.9     | %                                        |   |   | —                                                |   |   |                  | — |   |   |   | — |   |
| Corporate                                                                                            |   |     | — |   |                  |   | —  |                                     |   |   | (0.9                                                   | %)     |   |                  | — |   |   |   | (0.9 | %) |
| Total                                                                                                |   |     | (3.3    | %)     |                  |   | (3.5     | %)                                       |   |   | (0.9                                                   | %)     |   |                  | (2.5    | %) |   |   | — |   |

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| ·   | A      $10.3 million decline in earnings due to the completion of several major      projects in 2009 that generated higher operating income in the third      quarter of 2008, combined with delays of new projects primarily in the      power and industrial and commercialsectors. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      charge of $20.0 million on an oil and gas construction project that has      experienced cost increases and schedule delays, compared with a charge of      $15.0 million in the third quarter of  2008.   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Earnings      of $17.7 million recognized in the prior year on a DOE nuclear waste      processing facility construction project as a result of negotiations with      the DOE to modify the overall fee andstructure. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in equity in income of $2.3 million as previously      discussed. |
|--------------------|-----------------------------------------------------------------------------------|

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| ·   | A      $35.2 million decline in earnings due to the completion of several major      projects in 2009 that generated higher operating income during the same      period of fiscal 2008, combined with delays of new projects, primarily in      the power and industrial and commercial sectors. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      $19.0 million reduction from the loss of a re-bid of a DOE management      services contract that was active during the same period of      2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Charges      of $31.4 million on an oil and gas construction project that has      experienced cost increases and schedule delays, compared with charges of      $27.9 million in the same period of2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Earnings      of $17.7 million recognized in the prior year on a DOE nuclear waste      processing facility construction project as a result of negotiations with      the DOE to modify the overall fee andstructure. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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LIQUIDITY AND CAPITAL RESOURCES

|                                      |   | Nine      Months Ended |   |
|-------------------------------------------|--------|------------------------|--------|
| (In      millions)                        |   | October      2,2009    |   |   | September      26,2008 |   |
| Cash      flows from operating activities |   | $                      | 448.2  |   |   | $ | 283.4 |   |
| Cash      flows from investing activities |   |                   | 63.4   |   |   |   | (106.6 | ) |
| Cash      flows from financing activities |   |                   | (265.9 | ) |   |   | (211.7 | ) |

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|                                                                                      |   | Payments      and Commitments Due by Period |    |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
| Contractual      Obligations(Debt      payments include principal only)(In      millions) |   | Total                                       |    |   | Less      Than 1 Year |   |   | 1-3      Years |   |   | 4-5      Years |   |   | After5      Years |   |   | Other |   |
| 2007      Credit Facility (1)                                                        |   | $                                           | 868.0   |   |   | $ | 100.0 |   |   | $ | 432.2 |   |   | $ | 335.8 |   |   | $ | — |   |   | $ | — |   |
| Capital      lease obligations and equipment notes (1)                                    |   |                                        | 15.8    |   |   |   | 6.4 |   |   |   | 7.3 |   |   |   | 2.1 |   |   |   | — |   |   |   | — |   |
| Notes      payable, foreign credit lines and other indebtedness (1)                       |   |                                        | 25.5    |   |   |   | 10.2 |   |   |   | 13.0 |   |   |   | 2.3 |   |   |   | — |   |   |   | — |   |
| Total      debt                                                                           |   |                                        | 909.3   |   |   |   | 116.6 |   |   |   | 452.5 |   |   |   | 340.2 |   |   |   | — |   |   |   | — |   |
| Operating      lease obligations (2)                                                 |   |                                        | 505.4   |   |   |   | 143.1 |   |   |   | 203.0 |   |   |   | 113.7 |   |   |   | 45.6 |   |   |   | — |   |
| Pension      and other retirement plans funding requirements (3)                          |   |                                        | 256.3   |   |   |   | 30.3 |   |   |   | 39.7 |   |   |   | 61.0 |   |   |   | 125.3 |   |   |   | — |   |
| Interest      (4)                                                                    |   |                                        | 93.3    |   |   |   | 27.4 |   |   |   | 61.4 |   |   |   | 4.5 |   |   |   | — |   |   |   | — |   |
| Purchase      obligations (5)                                                        |   |                                        | 7.6     |   |   |   | 6.2 |   |   |   | 1.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Asset      retirement obligations (6)                                                |   |                                        | 3.7     |   |   |   | 0.6 |   |   |   | 1.2 |   |   |   | 1.5 |   |   |   | 0.4 |   |   |   | — |   |
| Other      contractual obligations (7)                                               |   |                                        | 49.8    |   |   |   | 29.9 |   |   |   | 8.2 |   |   |   | 1.7 |   |   |   | — |   |   |   | 10.0 |   |
| Total      contractual obligations                                                        |   | $                                           | 1,825.4 |   |   | $ | 354.1 |   |   | $ | 767.4 |   |   | $ | 522.6 |   |   | $ | 171.3 |   |   | $ | 10.0 |   |

| (1)   | Amounts      shown exclude unamortized debt issuance costs of $12.2 million for the      2007 Credit Facility.  For capital lease obligations, amounts      shown exclude interest of $1.5million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Operating      leases are predominantly real estateleases. |
|-----------------|------------------------------------------------------------|

| (3)   | Amounts      consist of estimated pension and other retirement plan funding      requirements for various pension, post-retirement, and other retirement      plans. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Interest      for the next five years, which excludes non-cash interest, was determined      based on the current outstanding balance of our debt and payment schedule      at the estimated interest rate including the effect of the interest rate      swaps. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Purchase      obligations consist primarily of software maintenance      contracts. |
|-----------------|-------------------------------------------------------------------------------------|

| (6)   | Asset      retirement obligations represent the estimated costs of removing and      restoring our leased properties to the original condition pursuant to our      real estate lease agreements. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Other      contractual obligations include net liabilities for anticipated      settlements of our tax liabilities, including      interest.  Generally, it is not practicable to forecast or      estimate the payment dates for the above-mentioned tax      liabilities.  Therefore, we included the estimated liabilities      under the “Other” column above.  In addition, we do not expect      that the payment of these tax liabilities will have a material impact on      our liquidity. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Letters      of credit primarily to support project performance, insurance programs,      bonding arrangements and real estate leases.  As of October 2,      2009, we had $207.1 million in standby letters of credit under our 2007      Credit Facility.  We are required to reimburse the issuers of      letters of credit for any payments they make under the outstanding letters      of credit.  Our 2007 Credit Facility covers the issuance of our      standby letters of credit and is critical for our normal      operations.  If we default on the 2007 Credit Facility, our      inability to issue or renew standby letters of credit would impair our      ability to maintain normaloperations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We guaranteed the credit facility of one of our      unconsolidated joint ventures, in the event of a default by the joint      venture.  This joint venture was formed in the ordinary course      of business to perform a contract for the U.S. federal      government.  The term of the guarantee was equal to the      remaining term of the underlying credit facility.  Performance      on this contract has ended and the guarantee was terminated in April      2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      have guaranteed a letter of credit issued on behalf of one of our      unconsolidated construction joint ventures, in which we are a 60% owner      with no significant influence over operations.  The total amount      of the letter of credit was $7.2 million as of October 2,      2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      have agreed to indemnify one of our joint venture partners up to $25.0      million for any potential losses and damages, and liabilities associated      with lawsuits in relation to general and administrative services we      provide to the joint venture.  Currently, we have not been      advised of any indemnified claims under this  guarantee. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of October 2, 2009, the amount of a guarantee used to collateralize the      credit facility of our U.K. operating subsidiary and bank guarantee lines      of our European subsidiaries was $8.2million. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | From      time to time, we provide guarantees related to our services or      work.  If our services under a guaranteed project are later      determined to have resulted in a material defect or other material      deficiency, then we may be responsible for monetary damages or other legal      remedies.  When sufficient information about claims on      guaranteed projects is available and monetary damages or other costs or      losses are determined to be probable, we recognize such guarantee      losses. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      the ordinary course of business, we enter into various agreements      providing performance assurances and guarantees to clients on behalf of      certain unconsolidated subsidiaries, joint ventures, and other jointly      executed contracts.  We entered into these agreements primarily      to support the project execution commitments of these      entities.  The potential payment amount of an outstanding      performance guarantee is typically the remaining cost of work to be      performed by or on behalf of third parties under engineering and      construction contracts.  However, we are not able to estimate      other amounts that may be required to be paid in excess of estimated costs      to complete contracts and, accordingly, the total potential payment amount      under our outstanding performance guarantees cannot be      estimated.  For cost-plus contracts, amounts that may become      payable pursuant to guarantee provisions are normally recoverable from the      client for work performed under the contract.  For lump sum or      fixed-price contracts, this amount is the cost to complete the contracted      work less amounts remaining to be billed to the client under the      contract.  Remaining billable amounts could be greater or less      than the cost to complete.  In those cases where costs exceed      the remaining amounts payable under the contract, we may have recourse to      third parties, such as owners, co-venturers, subcontractors or vendors,      for claims. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In      the ordinary course of business, our clients may request that we obtain      surety bonds in connection with contract performance obligations that are      not required to be recorded in our condensed consolidated balance      sheets.  We are obligated to reimburse the issuer of our surety      bonds for any payments made hereunder.  Each of our commitments      under performance bonds generally ends concurrently with the expiration of      our related contractual obligation. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (In      millions, except percentages)                                    |   | Nine      Months EndedOctober      2, 2009 |    |   | Year      EndedJanuary      2, 2009 |   |
|---------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|-------------------------------------|--------|
| Effective      average interest rates paid on the revolving line ofcredit |   |                                       | 3.2     | %      |                                |   | 5.6 | % |
| Average      daily revolving line of credit balances                      |   | $                                          | — |   |                                | $      | 0.2 |   |
| Maximum      amounts outstanding at any one point in time                 |   | $                                          | 0.3     |   |                                | $      | 7.7 |   |

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|                                           |   | Infrastructure      and Miningas      of August 20, 2009 |   |
|------------------------------------------------|--------|----------------------------------------------------------|--------|
| Discount      rate                             |   |                                                     | 13.0   | % |
| Compounded      annual revenue growth rate (1) |   |                                                     | 13.7   | % |
| Average      operating margin (1)         |   |                                                     | 5.7    | % |
| Capitalization      rate                       |   |                                                     | 8.0    | % |

| (1)   | Based      on 2009-2018 projected information. |
|-----------------|------------------------------------------------|

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|                             |   | Discount      Rate Used |   |   | Breakeven      Discount Rate |   |   | Capitalization      Rate Used |   |   | Breakeven      Capitalization Rate |   |
|----------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|------------------------------------|--------|
| As      of August 20, 2009       |   |                    |   |   |                         |   |   |                          |   |   |                               |   |
| Infrastructure      & Mining |   |                    | 13.00  | %      |                         |   | 13.29  | %                             |   |   | 8.00                               | %      |   |   | 8.60 | % |

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| (In      millions)                                                                                              |   | Infrastructure      and Miningas      ofAugust      20, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| Excess      of fair value over carrying value                                                                   |   | $                                                            | 19     |   |
|                                                                                                            |   |                                                         |   |   |
| A Decrease in the Excess of Fair Value Over      Carrying Value Resulting from Changes in Key      Assumptions: |   |                                                         |   |   |   |
| Increase      of 50 basis points in discount rate                                                               |   |                                                         | (32    | ) |
| Increase      of 50 basis points in capitalization rate                                                         |   |                                                         | (16    | ) |
| Reduction      in operating margin of 5%                                                                        |   |                                                         | (23    | ) |
| Reduction      in operating margin of 10%                                                                       |   |                                                         | (45    | ) |
| Reduction      in revenue growth of 15%                                                                         |   |                                                         | (41    | ) |
| Reduction      in revenue growth of 30%                                                                         |   |                                                         | (78    | ) |

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We adopted new accounting guidance regarding fair value measurementof non-financial assets and non-financial liabilities as of the beginning of our2009 fiscal year.  Our adoption of this guidance did not have amaterial impact on our consolidated financial statements.  Variousother updates were subsequently issued related to fair value guidance that alsowere not material to our consolidated financial statements.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK

ITEM 4.  CONTROLS AND PROCEDURES

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ITEM 1.  LEGAL PROCEEDINGS

ITEM 1A.  RISK FACTORS

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| ·   | require      us to dedicate a substantial portion of our cash flow from operations to      the servicing and repayment of our debt, thereby reducing funds available      for working capital, capital expenditures, dividends, acquisitions and      other purposes; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increase      our vulnerability to, and limit flexibility in planning for, adverse      economic and industry conditions; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | adversely      affect our ability to obtain suretybonds; |
|--------------------|----------------------------------------------------------|

| ·   | limit      our ability to obtain additional financing to fund future working capital,      capital expenditures, additional acquisitions and other general corporate      initiatives; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | create      competitive disadvantages compared to other companies with less      indebtedness; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | adversely      affect our stock price; and |
|--------------------|--------------------------------------------|

| ·   | limit      our ability to apply proceeds from an offering or asset sale to purposes      other than the servicing and repayment of  debt. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | incur      additional indebtedness; |
|--------------------|-------------------------------------|

| ·   | pay      dividends to our stockholders; |
|--------------------|-----------------------------------------|

| ·   | repurchase      or redeem our stock; |
|--------------------|--------------------------------------|

| ·   | repay      indebtedness that is junior to our 2007 Credit  Facility; |
|--------------------|----------------------------------------------------------------------|

| ·   | make      investments and other restrictedpayments; |
|--------------------|-----------------------------------------------------|

| ·   | create      liens securing debt or other encumbrances on our  assets; |
|--------------------|-----------------------------------------------------------------------|

| ·   | enter      into sale-leaseback transactions; |
|--------------------|----------------------------------------------|

| ·   | enter      into transactions with our stockholders and  affiliates; |
|--------------------|---------------------------------------------------------------------|

| ·   | sell      or exchange assets; and |
|--------------------|-----------------------------------|

| ·   | acquire      the assets of, or merge or consolidate with, other    companies. |
|--------------------|-------------------------------------------------------------------------------|

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| ·   | the      application of the percentage-of-completion method of revenue recognition      on contracts, change orders and contractclaims; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provisions      for uncollectible receivables and customer claims and recoveries of costs      from subcontractors, vendors andothers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provisions      for income taxes and related valuation  allowances; |
|--------------------|---------------------------------------------------------------------|

| ·   | value      of goodwill and recoverability of other intangible  assets; |
|--------------------|------------------------------------------------------------------------|

| ·   | valuation      of assets acquired and liabilities assumed in connection with business      combinations; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | valuation      of defined benefit pension plans and other employee benefit      plans; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | valuation      of stock-based compensation expense;and |
|--------------------|--------------------------------------------------------|

| ·   | accruals      for estimated liabilities, including litigation and insurance      reserves. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | our      ability to transition employees from completed projects to new assignments      and to hire and assimilate newemployees; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

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| ·   | our      ability to forecast demand for our services and thereby maintain an      appropriate headcount in each of our geographies and      workforces; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to manage attrition; |
|--------------------|---------------------------------------|

| ·   | our      need to devote time and resources to training, business development,      professional development and other non-chargeable activities;      and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to match the skill sets of our employees to the needs of the      marketplace. |
|--------------------|-------------------------------------------------------------------------------------------------|

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| ·   | unanticipated      issues in integrating information, communications and other      systems; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | unanticipated      incompatibility of logistics, marketing and administration      methods; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | maintaining      employee morale and retaining keyemployees; |
|--------------------|--------------------------------------------------------------|

| ·   | integrating      the business cultures of bothcompanies; |
|--------------------|----------------------------------------------------------|

| ·   | preserving      important strategic and customerrelationships; |
|--------------------|----------------------------------------------------------------|

| ·   | consolidating      corporate and administrative infrastructures and eliminating duplicative      operations; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | the      diversion of management’s attention from ongoing business concerns;      and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | coordinating      geographically separateorganizations. |
|--------------------|---------------------------------------------------------|

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| ·   | lack      of developed legal systems to enforce contractual  rights; |
|--------------------|----------------------------------------------------------------------|

| ·   | greater      risk of uncollectible accounts and longer collection    cycles; |
|--------------------|------------------------------------------------------------------------------|

| ·   | currency      fluctuations; |
|--------------------|-----------------------------|

| ·   | logistical      and communication challenges; |
|--------------------|-----------------------------------------------|

| ·   | potentially      adverse changes in laws and regulatory practices, including export license      requirements, trade barriers, tariffs and tax  laws; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in labor conditions; |
|--------------------|-----------------------------------|

| ·   | general      economic, political and financial conditions in foreign markets;      and |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | exposure      to civil or criminal liability under the Foreign Corrupt Practices Act,      anti-boycott rules, trade and export control rules and other international      regulations, for example: |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Foreign Corrupt Practices      Act:  Practices in the local business community outside      the U.S. might not conform to international business standards and could      violate anticorruption regulations, including the U.S. Foreign Corrupt      Practices Act, which prohibits giving or offering to give anything of      value with the intent to influence the awarding of government contracts;      and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Export Control      Regulations:  To the extent that we export products,      technical data and services outside the U.S., we are subject to U.S. laws      and regulations governing international trade and exports, including but      not limited to the International Traffic in Arms Regulations, the Export      Administration Regulations and trade sanctions against embargoed      countries, which are administered by the Office of Foreign Assets Control      within the Department of theTreasury. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

| Period      (In      thousands, except average price paid per share)                                                                                                                                              |   | (a)      Total Number of Shares Purchased (1) |    |   | (b)      Average Price Paid per Share |   |    | (c)      Total Number of Shares Purchased as Part of Publicly Announced Plans or      Programs (2) |   |   | (d)      Maximum Number of Shares that May Yet be Purchased Under the Plans or      Programs |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|---------------------------------------|--------|---------|----------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| July      4, 2009 – July      31, 2009                                                                                                                                                                      |   |                                          | — |   |                                  | $      | — |                                                                                               |   |   | —                                                                                      |   |   |   | — |   |
| August      1, 2009 – August      28, 2009                                                                                                                                                                  |   |                                          | — |   |                                  |   | — |                                                                                               |   |   | 362                                                                                          |   |   |   | — |   |
| August      29, 2009 – October      2, 2009                                                                                                                                                                 |   |                                          | 22      |   |                                  |   | 41.70   |                                                                                               |   |   | —                                                                                      |   |   |   | 2,614 |   |
| Total                                   |   |                                          | 22      |   |                                  |   |    |                                                                                               |   |   | 362                                                                                          |   |   |   | 2,614 |   |

| (1)   | All      purchases were made pursuant to awards issued under our equity incentive      plans, which allow our employees to surrender shares of our common stock      as payment toward the exercise cost and tax withholding obligations      associated with the exercise of stock options or the vesting of restricted      or deferred stock. |   |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| (2)   | On      March 26, 2007, we announced that our Board of Directors approved a common      stock repurchase program that will allow the repurchase of up to one      million shares of our common stock plus additional shares issued or deemed      issued under our stock incentive plans and Employee Stock Purchase Plan      for the period from December 30, 2006 through January 1, 2010 (excluding      shares issuable upon the exercise of options granted prior to December 30,      2006).  Our stock repurchase program will terminate on January      1, 2010.  Pursuant to our 2007 Credit Facility, we are subject      to covenants that will limit our ability to repurchase our common      stock.  However, we amended our 2007 Credit Facility on June 19,      2008 so that we are allowed to repurchase up to one million shares of      common stock annually if we maintain various designated financial      criteria.  During the three and nine months ended October 2,      2009, we repurchased an aggregate of 0.4 million shares and one million      shares of our common stock, respectively. |   |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

ITEM 5.  OTHER INFORMATION

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ITEM 6.  EXHIBITS

|                |   |                                                                                                                                                                                                                                                                                 |   | Incorporated      by Reference |   |   |    |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|---------|
| Exhibit      Number |   | Exhibit      Description                                                                                                                                                                                                                                                             |   | Form                           |   |   | Exhibit |   | Filing      Date |   | Filed      Herewith |   |
| 3.01                |   | Restated      Certificate of Incorporation of URS Corporation, as filed with the      Secretary of State of Delaware on September 9, 2008.                                                                                                                                           |   | 8-K                            |   |   | 3.01    |   | 9/11/2008 |   |   |   |
| 3.02                |   | By-laws      of URS Corporation as amended and restated on September 5,      2008.                                                                                                                                                                                                   |   | 8-K                            |   |   | 3.02    |   | 9/11/2008 |   |   |   |
| 4.1                 |   | Consent Regarding Creation of New International Holding      Company dated as of September 29, 2009, entered into by and among URS      Corporation, a syndicate of lenders party thereto, Wells Fargo Bank, N.A.,      as agent for lenders, and URS Corporation’sGuarantors. |   |                           |   |   |    |   |   |   |   |   |   | X |   |
| 10.1*               |   | Amended and Restated Employment Agreement between URS      Corporation and Susan B. Kilgannon, dated as of September 18,      2009.                                                                                                                                                  |   |                           |   |   |    |   |   |   |   |   |   | X |   |
| 10.2*               |   | First Amendment to the Restated Incentive Compensation      Plan 2009 Plan Year Summary.                                                                                                                                                                                             |   |                           |   |   |    |   |   |   |   |   |   | X |   |
| 10.3*               |   | Revised Compensatory Arrangement For Reed N.      Brimhall.                                                                                                                                                                                                                          |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 10.4*               |   | First Amendment to the EG&G Technical Services, Inc.      Employees Retirement Plan.                                                                                                                                                                                             |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 10.5*               |   | Second Amendment to the EG&G Technical Services,      Inc. Employees Retirement Plan.                                                                                                                                                                                            |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 10.6*               |   | Third Amendment to the EG&G Technical Services, Inc.      Employees Retirement Plan.                                                                                                                                                                                             |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 10.7*               |   | Form of 2008 Equity Incentive Plan Restricted Stock      Award Grant Notice and Agreement.                                                                                                                                                                                           |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 10.8*               |   | Form of 2008 Equity Incentive Plan Restricted Stock Unit      Award Grant Notice and Agreement.                                                                                                                                                                                      |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 31.1                |   | Certification of URS Corporation’s Chief Executive      Officer pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 31.2                |   | Certification of URS Corporation’s Chief Financial      Officer pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                |   |                           |   |   |    |   |   |   |   |   |   |  X |   |
| 32                  |   | Certification of URS Corporation’s Chief Executive Officer      and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002.                                                                                                                    |   |                           |   |   |    |   |   |   |   |   |   | X | ** |

|   |   |
|--------|--------|

| * | Represents      a management contract or compensatory plan or  arrangement. |
|---|-----------------------------------------------------------------------------|

| ** | Document      has been furnished and not filed and not to be incorporated into any of      our filings under the Securities Act of 1933 or the Securities Exchange      Act of 1934, irrespective of any general incorporation language included      in any such filing. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                | URS      CORPORATION |                                                              |
|-------------------------------------|----------------------|-------------------------------------------------------------------|
|                                |                 |                                                              |   |
| Dated:       November 12, 2009 | By:                  | /s/ Reed      N. Brimhall                                    |   |
|                                |                 | Reed      N. Brimhall                                             |   |
|                                |                 | Vice      President, Controller and      Chief Accounting Officer |   |
|                                |                 |                                                              |   |

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| Exhibit      No. |   | Description |
|------------------|--------|-------------|
|             | 4.1    |        | Consent Regarding Creation of New International Holding      Company dated as of September 29, 2009, entered into by and among URS      Corporation, a syndicate of lenders party thereto, Wells Fargo Bank, N.A.,      as agent for lenders, and URS Corporation’s  Guarantors. |
|             | 10.1   |        | Amended and Restated Employment Agreement between URS      Corporation and Susan B. Kilgannon, dated as of September 18,      2009. |
|             | 10.2   |        | First Amendment to the Restated Incentive Compensation      Plan 2009 Plan Year Summary. |
|             | 10.3   |        | Revised Compensatory Arrangement For Reed N.      Brimhall. |
|             | 10.4   |        | First Amendment to the EG&G Technical Services, Inc.      Employees Retirement Plan. |
|             | 10.5   |        | Second Amendment to the EG&G Technical Services,      Inc. Employees Retirement Plan. |
|             | 10.6   |        | Third Amendment to the EG&G Technical Services, Inc.      Employees Retirement Plan. |
|             | 10.7   |        | Form of 2008 Equity Incentive Plan Restricted Stock      Award Grant Notice and Agreement. |
|             | 10.8   |        | Form of 2008 Equity Incentive Plan Restricted Stock Unit      Award Grant Notice and Agreement. |
|             | 31.1   |        | Certification of URS Corporation’s Chief Executive      Officer pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|             | 31.2   |        | Certification of URS Corporation’s Chief Financial      Officer pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|             | 32     |        | Certification of URS Corporation’s Chief Executive Officer      and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002. |

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