----

----

| (Mark      one)                                   |
|---------------------------------------------------|
|        x                                     | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|                                              |
| For      the quarterly period ended June 27, 2008 |
|                                              |   |
| 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) | (I.R.S.      Employer Identification No.) |
|                                                |                                      |
| 600      Montgomery Street, 26th      Floor         |                                      |
| San      Francisco, California                      | 94111-2728                                |
| (Address      of principal executive offices)       | (Zip      Code)                           |

| Class                             | Outstanding at July 28,  2008 |
|-----------------------------------|-------------------------------|
|                              |                          |
| Common      Stock, $.01 par value | 84,437,424                    |

----

----

| PART      I.  | FINANCIAL      INFORMATION:                                                      |   |   |     |
|---------------|----------------------------------------------------------------------------------|--------|--------|----------|
|          |                                                                             |   |   |     |
| Item 1.       | Financial      Statements                                                        |   |   |     |
|          | Condensed      Consolidated Balance Sheets                                       |   |   |     |
|          | June      27, 2008 and December 28, 2007                                         |   |   |  2  |   |
|          | Condensed      Consolidated Statements of Operations and Comprehensive    Income |   |   |     |   |
|          | Three      and six months ended June 27, 2008 and June 29, 2007                  |   |   |  3  |   |
|          | Condensed      Consolidated Statements of Cash Flows                             |   |   |     |   |
|          | Six      months ended June 27, 2008 and June 29, 2007                            |   |   |  4  |   |
|          | Notes      to Condensed Consolidated Financial Statements                        |   |   |  6  |   |
| Item 2.       | Management’s      Discussion and Analysis of                               |   |   |     |   |
|          | Financial      Condition and Results of Operations                               |   |   |  37 |   |
| Item 3.       | Quantitative      and Qualitative Disclosures About Market Risk                  |   |   | 65       |   |
| Item 4.       | Controls      and Procedures                                                     |   |   | 66       |   |
|          |                                                                             |   |   |     |   |
| PART      II. | OTHER      INFORMATION:                                                          |   |   |     |   |
|          |                                                                             |   |   |     |   |
| Item 1.       | Legal      Proceedings                                                           |   |   | 67       |   |
| Item 1A.      | Risk      Factors                                                                |   |   | 67       |   |
| Item 2.       | Unregistered      Sales of Equity Securities and Use of Proceeds                 |   |   | 82       |   |
| Item 3.       | Defaults      Upon Senior Securities                                             |   |   | 82       |   |
| Item 4.       | Submission      of Matters to a Vote of Security Holders                         |   |   | 82       |   |
| Item 5.       | Other      Information                                                           |   |   | 83       |   |
| Item 6.       | Exhibits                                                                         |   |   | 84       |   |

----

ITEM 1.  FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                                                                                           |   | June      27, 2008 |      |   | December      28, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                         |   |               |      |   |                   |   |
| Current      assets:                                                                                                                                                           |   |               |      |   |                   |   |
| Cash      and cash equivalents, including $152,953 and $161,089 of short-term money      market funds, respectively                                                            |   | $                  | 277,923   |   |                   | $      | 256,502 |   |
| Accounts      receivable, including retentions of $63,768 and $58,366,      respectively                                                                                       |   |               | 1,031,178 |   |                   |   | 1,015,052 |   |
| Costs      and accrued earnings in excess of billings on contracts in      process                                                                                             |   |               | 1,076,864 |   |                   |   | 1,023,302 |   |
| Less      receivable allowances                                                                                                                                                |   |               | (44,071   | )      |                   |   | (51,173 | ) |
| Net      accounts receivable                                                                                                                                                   |   |               | 2,063,971 |   |                   |   | 1,987,181 |   |
| Deferred      tax assets                                                                                                                                                       |   |               | 131,330   |   |                   |   | 133,888 |   |
| Prepaid      expenses and other assets                                                                                                                                         |   |               | 177,953   |   |                   |   | 210,807 |   |
| Total      current assets                                                                                                                                                      |   |               | 2,651,177 |   |                   |   | 2,588,378 |   |
| Investments      in unconsolidated affiliates                                                                                                                                  |   |               | 238,129   |   |                   |   | 206,721 |   |
| Property      and equipment at cost, net                                                                                                                                       |   |               | 354,876   |   |                   |   | 357,907 |   |
| Intangible      assets, net                                                                                                                                                    |   |               | 546,031   |   |                   |   | 572,974 |   |
| Goodwill                                                                                                                                                                       |   |               | 3,140,154 |   |                   |   | 3,139,618 |   |
| Other      assets$                                                                                                                                                             |   |               | 93,208    |   |                   |   | 64,367 |   |
| Total      assets                                                                                                                                                              |   | $                  | 7,023,575 |   |                   | $      | 6,929,965 |   |
| LIABILITIES,      MINORITY INTERESTS, AND STOCKHOLDERS’ EQUITY                                                                                                           |   |               |      |   |                   |   |   |   |
| Current      liabilities:                                                                                                                                                      |   |               |      |   |                   |   |   |   |
| Book      overdrafts                                                                                                                                                           |   | $                  | 1,104     |   |                   | $      | 15,638 |   |
| Current      portion of long-term debt                                                                                                                                         |   |               | 18,197    |   |                   |   | 17,964 |   |
| Accounts      payable and subcontractors payable, including retentions of $72,859 and      $73,491, respectively                                                               |   |               | 761,667   |   |                   |   | 693,614 |   |
| Accrued      salaries and wages                                                                                                                                                |   |               | 484,428   |   |                   |   | 486,853 |   |
| Billings      in excess of costs and accrued earnings on contracts in      process                                                                                             |   |               | 250,497   |   |                   |   | 296,752 |   |
| Accrued      expenses and other                                                                                                                                                |   |               | 197,735   |   |                   |   | 170,782 |   |
| Total      current liabilities                                                                                                                                                 |   |               | 1,713,628 |   |                   |   | 1,681,603 |   |
| Long-term      debt                                                                                                                                                            |   |               | 1,189,765 |   |                   |   | 1,288,817 |   |
| Deferred      tax liabilities                                                                                                                                                  |   |               | 174,600   |   |                   |   | 137,058 |   |
| Self-insurance      reserves                                                                                                                                                   |   |               | 98,647    |   |                   |   | 73,253 |   |
| Pension,      post-retirement, and other benefit obligations                                                                                                                   |   |               | 137,337   |   |                   |   | 156,843 |   |
| Other      long-term liabilities                                                                                                                                               |   |               | 77,629    |   |                   |   | 88,735 |   |
| Total      liabilities                                                                                                                                                         |   |               | 3,391,606 |   |                   |   | 3,426,309 |   |
| Commitments      and contingencies (Note 9)                                                                                                                                    |   |               |      |   |                   |   |   |   |
| Minority      interests                                                                                                                                                        |   |               | 27,114    |   |                   |   | 25,086 |   |
| Stockholders’      equity:                                                                                                                                               |   |               |      |   |                   |   |   |   |
| Preferred      stock, authorized 3,000 shares; no shares outstanding                                                                                                           |   |               | —   |   |                   |   | — |   |
| Common      shares, par value $.01; authorized 200,000 shares; 84,322 and 83,355      shares issued, respectively; and 84,270 and 83,303 shares outstanding,      respectively |   |               | 843       |   |                   |   | 833 |   |
| Treasury      stock, 52 shares at cost                                                                                                                                         |   |               | (287      | )      |                   |   | (287 | ) |
| Additional      paid-in capital                                                                                                                                                |   |               | 2,812,099 |   |                   |   | 2,797,238 |   |
| Accumulated      other comprehensive income                                                                                                                                    |   |               | 19,254    |   |                   |   | 16,635 |   |
| Retained      earnings                                                                                                                                                         |   |               | 772,946   |   |                   |   | 664,151 |   |
| Total      stockholders’ equity                                                                                                                                          |   |               | 3,604,855 |   |                   |   | 3,478,570 |   |
| Total      liabilities, minority interests and stockholders’ equity                                                                                                      |   | $                  | 7,023,575 |   |                   | $      | 6,929,965 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME- UNAUDITED

|                                                                          |   | Three      Months Ended |       |   | Six      Months Ended |   |
|-------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|
|                                                                          |   | June      27,2008       |       |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
|                                                                          |   |                    |       |   |                  |   |   |   |   |   |   |   |
| Revenues                                                                      |   | $                       | 2,530,944  |   |                  | $      | 1,243,621 |   |   | $ | 4,789,971 |   |   |   | 2,375,637 |   |
| Cost      of revenues                                                         |   |                    | (2,403,013 | )      |                  |   | (1,164,328 | ) |   |   | (4,559,757 | ) |   |   | (2,228,639 | ) |
| General      and administrative expenses                                      |   |                    | (20,458    | )      |                  |   | (14,011 | ) |   |   | (36,636 | ) |   |   | (27,608 | ) |
| Equity      in income of unconsolidated affiliates                            |   |                    | 26,986     |   |                  |   | 3,179 |   |   |   | 56,732 |   |   |   | 6,757 |   |
| Operating      income                                                         |   |                    | 134,459    |   |                  |   | 68,461 |   |   |   | 250,310 |   |   |   | 126,147 |   |
| Interest      expense                                                         |   |                    | (23,126    | )      |                  |   | (4,051 | ) |   |   | (48,745 | ) |   |   | (7,991 | ) |
| Income      before income taxes and minority interests                        |   |                    | 111,333    |   |                  |   | 64,410 |   |   |   | 201,565 |   |   |   | 118,156 |   |
| Income      tax expense                                                       |   |                    | (47,534    | )      |                  |   | (26,725 | ) |   |   | (84,985 | ) |   |   | (49,031 | ) |
| Minority      interests in income of consolidated subsidiaries, net of    tax |   |                    | (4,374     | )      |                  |   | (883 | ) |   |   | (7,785 | ) |   |   | (1,962 | ) |
| Net      income                                                               |   |                    | 59,425     |   |                  |   | 36,802 |   |   |   | 108,795 |   |   |   | 67,163 |   |
| Other      comprehensive income (loss):                                       |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustments, net of tax                     |   |                    | 5          |   |                  |   | 2,206 |   |   |   | 5,418 |   |   |   | 3,176 |   |
| Interest      rate swaps, net of tax                                          |   |                    | 7,713      |   |                  |   | — |   |   |   | (2,799 | ) |   |   | — |   |
| Comprehensive      income                                                     |   | $                       | 67,143     |   |                  | $      | 39,008 |   |   | $ | 111,414 |   |   | $ | 70,339 |   |
| Earnings      per share (Note 1):                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                         |   | $                       | .72        |   |                  | $      | .71 |   |   | $ | 1.33 |   |   | $ | 1.31 |   |
| Diluted                                                                       |   | $                       | .72        |   |                  | $      | .70 |   |   | $ | 1.32 |   |   | $ | 1.28 |   |
| Weighted-average      shares outstanding (Note 1):                            |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                         |   |                    | 81,989     |   |                  |   | 51,484 |   |   |   | 81,897 |   |   |   | 51,367 |   |
| Diluted                                                                       |   |                    | 82,676     |   |                  |   | 52,782 |   |   |   | 82,563 |   |   |   | 52,444 |   |

----

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -UNAUDITED

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Six      Months Ended |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | June      27,2008     |     |   | June      29,2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |     |   |   |   |
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  |     |   |   |   |
| Net      income                                                                                                                                      |   | $                     | 108,795  |   |   | $ | 67,163 |   |
| Adjustments      to reconcile net income to net cash from operating    activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  |     |   |   |   |   |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                  | 43,843   |   |   |   | 19,216 |   |
| Amortization      of intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 26,848   |   |   |   | 500 |   |
| Amortization      of debt issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                  | 4,139    |   |   |   | 857 |   |
| Normal      profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  | (8,760   | ) |   |   | (1,064 | ) |
| Provision      for doubtful accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  | 1,473    |   |   |   | 1,727 |   |
| Deferred      income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  | 40,100   |   |   |   | (634 | ) |
| Stock-based      compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | 14,290   |   |   |   | 13,924 |   |
| Excess      tax benefits from stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | (342     | ) |   |   | (4,022 | ) |
| Minority      interests in income of consolidated subsidiaries, net of    tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | 7,785    |   |   |   | 1,962 |   |
| 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 in process                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  | (81,060  | ) |   |   | (58,139 | ) |
| Prepaid      expenses and other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 8,574    |   |   |   | (15,282 | ) |
| Investments      in unconsolidated affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | (13,610  | ) |   |   | 8,424 |   |
| Accounts      payable, accrued salaries and wages and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 25,743   |   |   |   | 39,583 |   |
| Billings      in excess of costs and accrued earnings on contracts in      process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                  | 6,412    |   |   |   | (39,315 | ) |
| Other      long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                  | 14,708   |   |   |   | (617 | ) |
| Other      assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 65       |   |   |   | (9,571 | ) |
| Total      adjustments and      changes                                                                                                                                            |   |                  | 90,208   |   |   |   | (42,451 | ) |
| Net      cash from operating      activities                                                                                                                                                                     |   |                  | 199,003  |   |   |   | 24,712 |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  |     |   |   |   |   |   |
| Payment      for business acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                  | (2,316   | ) |   |   | — |   |
| Proceeds      from disposal of property and equipment, and sale-leaseback      transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                  | 8,435    |   |   |   | — |   |
| Investments      in unconsolidated affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | (23,116  | ) |   |   | — |   |
| Decrease      in restricted cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                  | 1,937    |   |   |   | — |   |
| Capital      expenditures, less equipment purchased through capital leases and      equipment notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  | (45,628  | ) |   |   | (13,202 | ) |
| Net      cash from investing      activities                                                                                                                                                                     |   |                  | (60,688  | ) |   |   | (13,202 | ) |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  |     |   |   |   |   |   |
| Long-term      debt principal payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | (104,344 | ) |   |   | (35,769 | ) |
| Net      payments under lines of credit and short-term notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                  | (220     | ) |   |   | (4,788 | ) |
| Net      change in book overdrafts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  | (14,534  | ) |   |   | (2,515 | ) |
| Capital      lease obligation payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | (3,996   | ) |   |   | (6,889 | ) |
| Excess      tax benefits from stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | 342      |   |   |   | 4,022 |   |
| Proceeds      from employee stock purchases and exercises of stock    options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | 5,858    |   |   |   | 8,438 |   |
| Net      cash from financing      activities                                                                                                                                                                     |   |                  | (116,894 | ) |   |   | (37,501 | ) |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                  | 21,421   |   |   |   | (25,991 | ) |
| Cash      and cash equivalents at beginning of      period                                                                                      |   |                  | 256,502  |   |   |   | 89,502 |   |
| Cash      and cash equivalents at end of      period                                                                                            |   | $                     | 277,923  |   |   | $ | 63,511 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Six      Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | June      27,2008     |    |   | June      29,2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |    |   |   |   |
| Supplemental      information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  |    |   |   |   |
| Interest      paid                                                                                                              |   | $                     | 45,916  |   |   | $ | 8,282 |   |
| Taxes      paid                                                                                                                 |   | $                     | 25,824  |   |   | $ | 46,894 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |    |   |   |   |   |   |
| Supplemental      schedule of noncash investing and financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                  |    |   |   |   |   |   |
| Fair      value of assets acquired (net of cash acquired)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                     | — |   |   | $ | 16,888 |   |
| Liabilities      assumed                                                                                                   |   |                  | — |   |   |   | 127 |   |
| Non      cash business      acquisition                                                                                    |   | $                | — |   |   | $ | 16,761 |   |
| Equipment      acquired with capital lease obligations and equipment note      obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                     | 6,671   |   |   | $ | 11,249 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |    |   |   |   |   |   |

----

NOTE 1.  BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTINGPOLICIES

----

|                                                     |   | Three      Months Ended |   |   | Six      Months Ended |   |
|----------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In      thousands)                                      |   | June      27,2008       |   |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Weighted-average      common stock shares outstanding    |   |                    | 81,989 |   |                  |   | 51,484 |   |   |   | 81,897 |   |   |   | 51,367 |   |
| Stock      options and restricted stock awards and units |   |                    | 687    |   |                  |   | 1,298 |   |   |   | 666 |   |   |   | 1,077 |   |
|                                                     |   |                    | 82,676 |   |                  |   | 52,782 |   |   |   | 82,563 |   |   |   | 52,444 |   |

----

----

----

NOTE 2. ACQUISITION

| (In      thousands)                               |   | Purchase      Price |      |
|---------------------------------------------------|--------|---------------------|-----------|
| Cash      consideration                           |   | $                   | 1,478,313 |   |
| Value      of URS Corporation common stock issued |   |                | 1,816,821 |   |
| Estimated      direct transaction costs           |   |                | 25,695    |   |
| Total      purchase price                         |   | $                   | 3,320,829 |   |

----

| Allocation      of purchase price:(In      thousands)         |   | Amount       |      | EstimatedUseful      Life as      of November      15, 2007 |
|---------------------------------------------------------------|--------|--------------|-----------|-------------------------------------------------------------|
| Net      tangible assets:                                     |   |         |      |                                                        |
| Current      tangible assets                                  |   | $            | 1,223,928 |                                                        |   |
| Property      and equipment                                   |   |    | 179,295   |                                                        |   |
| Other      non-current tangible assets                        |   |         | 167,492   |                                                        |   |
| Current      liabilities                                      |   |         | (800,551  | )                                                           |   |
| Long-term      liabilities                                    |   |         | (203,913  | )                                                           |   |
| Minority      interests                                       |   |         | (17,373   | )                                                           |   |
| Total      net tangible assets                                |   |         | 548,878   |                                                        |   |
| Identifiable      intangible assets:                          |   |         |      |                                                        |   |
| Customer      relationships and backlog                       |   |         | 539,391   |                                                        | 11      years† |
| Trade      name                                               |   |         | 34,000    |                                                        | 15      years† |
| Favorable      leases                                         |   |         | 2,810     |                                                        | 4.6      years† |
| Total      amount allocated to identifiable intangible assets |   |         | 576,201   |                                                        |   |
| Net      deferred tax assets                                  |   |         | 70,659    |                                                        |   |
| Accrual      for restructuring costs                          |   |         | (23,815   | )                                                           |   |
| Goodwill                                                      |   |         | 2,148,906 |                                                        |   |
| Total      purchase price                                     |   | $            | 3,320,829 |                                                        |   |
| †Estimated      weighted-average remaining useful life  |   |         |      |                                                        |   |

----

----

| (In      thousands)                                         |   | Three      Months EndedJune      27, 2008 |    |   | Six      Months EndedJune      27, 2008 |   |
|-------------------------------------------------------------|--------|-------------------------------------------|---------|--------|-----------------------------------------|--------|
| Estimated      restructuring reserve at beginning of period |   | $                                         | 23,040  |   |                                    | $      | 26,600 |   |
| Adjustments                                                 |   |                                      | — |   |                                    |   | (2,785 | ) |
| Payments                                                    |   |                                      | (2,433  | )      |                                    |   | (3,208 | ) |
| Balance      as of June 27, 2008                            |   | $                                         | 20,607  |   |                                    | $      | 20,607 |   |

| Unaudited      (In millions, except per share data)                                                                                                                                                                                                                                                                                                         |   | Three      Months EndedJune      29, 2007 (1) |    |   | Six      Months EndedJune      29, 2007 (1) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|---------------------------------------------|--------|
| Revenues      (1)                                                        |   | $                                             | 2,076.4 |   |                                        | $      | 3,934.4 |   |
| Net      income                                                          |   | $                                             | 29.7    |   |                                        | $      | 53.9 |   |
| Basic      EPS                                                           |   | $                                             | .37     |   |                                        | $      | .67 |   |
| Diluted      EPS                                                         |   | $                                             | .36     |   |                                        | $      | .66 |   |

| (1)   | For      the three months ended June 29, 2007, we included pro forma adjustments of      $119.1 million to revenues and $135.0 million to cost of      revenues.  For the six months ended June 29, 2007, we included      pro forma adjustments of $230.5 million to revenues and $240.6 million to      cost of revenues.  These adjustments were made to conform WGI’s      unconsolidated joint ventures, previously accounted for using      proportionate consolidation, to reflect the use of the equity      method. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

NOTE 3. JOINT VENTURES

| (In      thousands)            |   | June      27, 2008 |   |   | December      28, 2007 |   |
|--------------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Cash      and cash equivalents |   | $                  | 28,597 |   |                   | $      | 27,029 |   |
| Net      accounts receivable   |   |               | 57,490 |   |                   |   | 54,932 |   |
| Other      assets              |   |               | 1,169  |   |                   |   | 33,737 |   |
| Total      assets              |   | $                  | 87,256 |   |                   | $      | 115,698 |   |

----

| (In      thousands)                               |   | MIBRAGMiningVenture |      |   | UnconsolidatedConstruction      JointVentures |   |    | UnconsolidatedNon-ConstructionJoint      Ventures |   |
|---------------------------------------------------|--------|---------------------|-----------|--------|-----------------------------------------------|--------|---------|---------------------------------------------------|--------|
| June 27, 2008                                     |   |                |      |   |                                          |   |    |                                              |   |
| Current      assets                               |   | $                   | 173,734   |   |                                          | $      | 329,048 |                                              |   | $ | 133,288 |   |
| Noncurrent      assets                            |   | $                   | 1,146,202 |   |                                          | $      | 990     |                                              |   | $ | 11,622 |   |
| Current      liabilities                          |   | $                   | 87,067    |   |                                          | $      | 257,066 |                                              |   | $ | 83,539 |   |
| Noncurrent      liabilities                       |   | $                   | 910,506   |   |                                          | $      | — |                                              |   | $ | 4,590 |   |
|                                              |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| December 28, 2007                                 |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Current      assets                               |   | $                   | 121,297   |   |                                          | $      | 389,104 |                                              |   | $ | 114,534 |   |
| Noncurrent      assets                            |   | $                   | 1,060,199 |   |                                          | $      | 5,254   |                                              |   | $ | 10,190 |   |
| Current      liabilities                          |   | $                   | 67,899    |   |                                          | $      | 357,430 |                                              |   | $ | 78,914 |   |
| Noncurrent      liabilities                       |   | $                   | 839,655   |   |                                          | $      | — |                                              |   | $ | 17,853 |   |
|                                              |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Three months ended June 27,      2008             |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Revenues                                          |   | $                   | 134,144   |   |                                          | $      | 446,467 |                                              |   | $ | 111,565 |   |
| Cost      of revenues                             |   |                | 119,592   |   |                                          |   | 408,728 |                                              |   |   | 82,756 |   |
| Income      from continuing operations before tax |   | $                   | 14,552    |   |                                          | $      | 37,739  |                                              |   | $ | 28,809 |   |
|                                              |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Three months ended June 29,      2007             |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Revenues                                          |   |                | N/A       | (1)    |                                          | $      | 86,298  |                                              |   | $ | 73,838 |   |
| Cost      of revenues                             |   |                | N/A       | (1)    |                                          |   | 83,454  |                                              |   |   | 70,951 |   |
| Income      from continuing operations before tax |   |                | N/A       | (1)    |                                          | $      | 2,844   |                                              |   | $ | 2,887 |   |
|                                              |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Six months ended June 27,    2008                 |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Revenues                                          |   | $                   | 264,008   |   |                                          | $      | 784,549 |                                              |   | $ | 225,037 |   |
| Cost      of revenues                             |   |                | 230,414   |   |                                          |   | 725,306 |                                              |   |   | 166,845 |   |
| Income      from continuing operations before tax |   | $                   | 33,594    |   |                                          | $      | 59,243  |                                              |   | $ | 58,192 |   |
|                                              |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Six months ended June 29,    2007                 |   |                |      |   |                                          |   |    |                                              |   |   |   |   |
| Revenues                                          |   |                | N/A       | (1)    |                                          | $      | 174,770 |                                              |   | $ | 137,069 |   |
| Cost      of revenues                             |   |                | N/A       | (1)    |                                          |   | 168,388 |                                              |   |   | 130,834 |   |
| Income      from continuing operations before tax |   |                | N/A       | (1)    |                                          | $      | 6,382   |                                              |   | $ | 6,235 |   |

| (1)   | Financial      information for our MIBRAG mining joint venture for the three and six      months ended June 29, 2007 is not presented because it is owned by our      Washington Division, which did not exist as one of our divisions until our      acquisition of WGI on November 15,2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

NOTE 4.  PROPERTY, EQUIPMENT, AND INTANGIBLEASSETS

| (In      thousands)                            |   | June      27, 2008 |     |   | December      28, 2007 |   |
|------------------------------------------------|--------|--------------------|----------|--------|------------------------|--------|
| Equipment      and internal-use software       |   | $                  | 312,826  |   |                   | $      | 294,084 |   |
| Construction      and mining equipment         |   |               | 209,450  |   |                   |   | 198,883 |   |
| Furniture      and fixtures                    |   |               | 50,556   |   |                   |   | 49,401 |   |
| Leasehold      improvements                    |   |               | 61,938   |   |                   |   | 59,125 |   |
| Construction      in progress                  |   |               | 7,876    |   |                   |   | 6,553 |   |
| Land      and improvements                     |   |               | 584      |   |                   |   | 584 |   |
|                                           |   |               | 643,230  |   |                   |   | 608,630 |   |
| Accumulated      depreciation and amortization |   |               | (288,354 | )      |                   |   | (250,723 | ) |
| Property      and equipment at cost, net       |   | $                  | 354,876  |   |                   | $      | 357,907 |   |

NOTE 5. INDEBTEDNESS

| (In      thousands)                                             |   | June      27,2008 |      |   | December      28,2007 |   |
|-----------------------------------------------------------------|--------|-------------------|-----------|--------|-----------------------|--------|
| Bank      term loans, net of  debt issuance costs     |   | $                 | 1,156,822 |   |                  | $      | 1,254,383 |   |
| Obligations      under capital leases                           |   |              | 20,324    |   |                  |   | 22,715 |   |
| Notes      payable, foreign credit lines and other indebtedness |   |              | 30,816    |   |                  |   | 29,683 |   |
| Total      indebtedness                                         |   |              | 1,207,962 |   |                  |   | 1,306,781 |   |
| Less:                                                           |   |              |      |   |                  |   |   |   |
|  Current      portion of long-term debt                    |   |              | 18,197    |   |                  |   | 17,964 |   |
| Long-term      debt                                             |   | $                 | 1,189,765 |   |                  | $      | 1,288,817 |   |

----

| (In      millions, except percentages)                                    |   | Six      Months EndedJune      27, 2008 |   |   | Year      Ended December 28, 2007 |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------|--------|
| Effective      average interest rates paid on the revolving line ofcredit |   |                                    | 5.9    | %      |                              |   | 8.2 | % |
| Average      daily revolving line of credit balances                      |   | $                                       | 0.3    |   |                              | $      | 2.3 |   |
| Maximum      amounts outstanding at any one point in time                 |   | $                                       | 7.6    |   |                              | $      | 40.3 |   |

----

| (In      thousands)                                                                                                                                                                                                                                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Less      than one      year                                            |   | $ | 9,555 |   |
| Second      year                                                        |   |   | 22,636 |   |
| Third      year                                                         |   |   | 102,873 |   |
| Fourth      year                                                        |   |   | 644,309 |   |
| Fifth      year                                                         |   |   | 408,232 |   |
| Thereafter                                                              |   |   | 33 |   |
|                                                                                                                                                                                                                                                                                           |   | $ | 1,187,638 |   |

| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Less      than one      year                                                                                  |   | $      | 9,545  |   |
| Second      year                                                                                              |   |   | 5,724  |   |
| Third      year                                                                                               |   |   | 4,216  |   |
| Fourth      year                                                                                              |   |   | 2,188  |   |
| Fifth      year                                                                                               |   |   | 497    |   |
| Total      minimum lease      payments                                                                                  |   |   | 22,170 |   |
| Less:      amounts representing      interest                                                                 |   |   | 1,846  |   |
| Present      value of net minimum lease payments                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 20,324 |   |

----

| (In      millions)                                 | Total      Carrying Value as of June 27, 2008          | Fair      Value Measurement as of June 27, 2008 |
|----------------------------------------------------|--------------------------------------------------------|-------------------------------------------------|
| Quoted      Prices in Active Markets(Level      1) | Significant      Other Observable Inputs(Level      2) | Significant      Unobservable Inputs (Level 3)  |
| Derivative      liabilities                        | $        8.7   | $      —    | $        8.7 | $      — |

NOTE 6. EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFITPLANS

|                                                                                                                                                                                                                                                               |   | Three      Months Ended |   |   | Six      Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In      thousands)                                                                                                                                                                                                                                                |   | June      27,2008       |   |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Service      cost                                          |   | $                       | 1,684  |   |                  | $      | 1,923 |   |   | $ | 3,368 |   |   | $ | 3,846 |   |
| Interest      cost                                         |   |                    | 4,500  |   |                  |   | 2,807 |   |   |   | 9,000 |   |   |   | 5,614 |   |
| Expected      return on plan assets                                                                                                                                                                                                                                |   |                    | (3,914 | )      |                  |   | (2,850 | ) |   |   | (7,828 | ) |   |   | (5,700 | ) |
| Amortization      of:                                                                                                                                                                                                                                              |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Prior      service      cost                                              |   |                    | (518   | )      |                  |   | (525 | ) |   |   | (1,036 | ) |   |   | (1,050 | ) |
| Net      loss                                                             |   |                    | 12     |   |                  |   | 265 |   |   |   | 24 |   |   |   | 530 |   |
| Net      periodic benefit cost                                                                                                                                                                                                                                     |   | $                       | 1,764  |   |                  | $      | 1,620 |   |   | $ | 3,528 |   |   | $ | 3,240 |   |

----

|                                                                                                                                                                                                                                                                      |   | Three      Months Ended |   |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In      thousands)                                                                                                                                                                                                                                                       |   | June      27,2008       |   |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Service      cost                                                 |   | $                       | 17     |   |                  | $      | 65 |   |   | $ | 34 |   |   | $ | 130 |   |
| Interest      cost                                                |   |                    | 647    |   |                  |   | 79 |   |   |   | 1,294 |   |   |   | 158 |   |
| Expected      return on plan assets                                                                                                                                                                                                                                       |   |                    | (74    | )      |                  |   | (75 | ) |   |   | (148 | ) |   |   | (150 | ) |
| Amortization      of:                                                                                                                                                                                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      (gain)      loss                                         |   |                    | (57    | )      |                  |   | 10 |   |   |   | (114 | ) |   |   | 20 |   |
| Net      periodic benefit cost                                                                                                                                                                                                                                            |   | $                       | 533    |   |                  | $      | 79 |   |   | $ | 1,066 |   |   | $ | 158 |   |

|                                                                                                                                                                                                                                                               |   | Three      Months Ended |   |   | Six      Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In      thousands)                                                                                                                                                                                                                                                |   | June      27,2008       |   |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Interest      cost                                         |   | $                       | 312    |   |                  | $      | 280 |   |   |   | 624 |   |   | $ | 557 |   |
| Expected      return on plan assets                                                                                                                                                                                                                                |   |                    | (131   | )      |                  |   | (128 | ) |   |   | (263 | ) |   |   | (255 | ) |
| Amortization      of:                                                                                                                                                                                                                                              |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                             |   |                    | 52     |   |                  |   | 49 |   |   |   | 103 |   |   |   | 97 |   |
| Net      periodic pension cost (1)                                                                                                                                                                                                                                 |   | $                       | 233    |   |                  | $      | 201 |   |   | $ | 464 |   |   | $ | 399 |   |

----

|                                                                                                          |   | Three      Months Ended |    |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
| (In      millions)                                                                                            |   | June      27,2008       |    |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Stock-based      compensation expenses:                                                                       |   |                    |    |   |                  |   |   |   |   |   |   |   |
| Restricted      stock awards and units                                                                        |   | $                       | 7.7     |   |                  | $      | 6.4 |   |   | $ | 14.3 |   |   | $ | 12.1 |   |
| Stock      options                                                                                            |   |                    | — |   |                  |   | 0.9 |   |   |   | — |   |   |   | 1.8 |   |
| Stock-based      compensation expenses                                                                        |   | $                       | 7.7     |   |                  | $      | 7.3 |   |   | $ | 14.3 |   |   | $ | 13.9 |   |
|                                                                                                          |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Total      income tax benefits recognized in our net income related to stock-based      compensation expenses |   | $                       | 3.0     |   |                  | $      | 2.8 |   |   | $ | 5.5 |   |   | $ | 5.4 |   |

| (In      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | June      27, 2008 |   |   | June      29, 2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
| Fair      values of shares      vested                                                                              |   | $                  | 17.6   |   |               | $      | 13.7 |   |
| Grant      date fair values of restricted stock awards and units                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                  | 37.5   |   |               | $      | 19.8 |   |

----

|                                                                                                                                                                                                                                                                                                                                             |   | Six      Months EndedJune      27, 2008 |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                             |   | Shares                                  |      |   | Weighted-Average      Grant Date Fair Value |   |
| Nonvested      at December 28, 2007                                                                                                                                                                                                                                                                                                              |   |                                    | 1,736,333 |   |   | $ | 44.58 |   |
| Granted                                                                                          |   |                                    | 1,075,488 |   |   | $ | 34.85 |   |
| Vested                                                                                           |   |                                    | (407,984  | ) |   | $ | 42.67 |   |
| Forfeited                                                                                        |   |                                    | (81,154   | ) |   | $ | 44.93 |   |
| Nonvested      at June 27,      2008                                                   |   |                                    | 2,322,683 |   |   | $ | 40.39 |   |

|                                              |   | Stock      Options |      |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Contractual Term (in years) |   |   | Aggregate      Intrinsic Value (in      millions) |   |
|---------------------------------------------------|--------|--------------------|-----------|--------|--------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Outstanding      at December 28, 2007             |   |               | 1,605,957 |   |                                 | $      | 22.60  |                                                        |   |   | 4.74                                              |   |   | $ | 51.7 |   |
| Exercised                                         |   |               | (44,484   | )      |                                 | $      | 22.82  |                                                        |   |   |                                              |   |   |   |   |   |
| Forfeited/expired/cancelled                       |   |               | (5,500    | )      |                                 | $      | 19.56  |                                                        |   |   |                                              |   |   |   |   |   |
| Outstanding      and exercisable at June 27, 2008 |   |               | 1,555,973 |   |                                 | $      | 22.61  |                                                        |   |   | 4.19                                              |   |   | $ | 32.0 |   |

----

----

|                                                     |   | Three      Months Ended |    |   | Six      Months Ended      |   |
|----------------------------------------------------------|--------|-------------------------|---------|--------|----------------------------|--------|
| (In      millions)                                       |   | June      27,2008       |    |   | June      29,2007      (3) |   |   | June      27,2008 |   |   | June      29,2007      (3) |   |
| Revenues                                                 |   |                    |    |   |                       |   |   |   |   |   |   |   |
| URS      Division                                        |   | $                       | 887.6   |   |                       | $      | 802.1 |   |   | $ | 1,706.8 |   |   | $ | 1,529.4 |   |
| EG&G      Division                                   |   |                    | 576.2   |   |                       |   | 370.5 |   |   |   | 1,125.5 |   |   |   | 708.4 |   |
| Washington      Division                                 |   |                    | 1,081.1 |   |                       |   | 98.3 |   |   |   | 1,982.7 |   |   |   | 168.0 |   |
| Inter-segment,      eliminations and other               |   |                    | (14.0   | )      |                       |   | (27.3 | ) |   |   | (25.0 | ) |   |   | (30.2 | ) |
| Total      revenues                                      |   | $                       | 2,530.9 |   |                       | $      | 1,243.6 |   |   | $ | 4,790.0 |   |   | $ | 2,375.6 |   |
| Equity      in income of unconsolidated affiliates       |   |                    |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                        |   | $                       | 2.4     |   |                       | $      | 1.8 |   |   | $ | 4.3 |   |   | $ | 4.0 |   |
| EG&G      Division                                   |   |                    | 1.9     |   |                       |   | 1.4 |   |   |   | 3.6 |   |   |   | 2.8 |   |
| Washington      Division                                 |   |                    | 22.7    |   |                       |   | — |   |   |   | 48.8 |   |   |   | — |   |
| Total      equity in income of unconsolidated affiliates |   | $                       | 27.0    |   |                       | $      | 3.2 |   |   | $ | 56.7 |   |   | $ | 6.8 |   |
| Contribution      (1)                                    |   |                    |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                        |   | $                       | 69.7    |   |                       | $      | 58.1 |   |   | $ | 128.4 |   |   | $ | 111.6 |   |
| EG&G      Division                                   |   |                    | 33.6    |   |                       |   | 22.6 |   |   |   | 60.7 |   |   |   | 39.3 |   |
| Washington      Division                                 |   |                    | 49.0    |   |                       |   | 3.7 |   |   |   | 92.2 |   |   |   | 6.3 |   |
| Inter-segment      and other unallocated operating costs |   |                    | — |   |                       |   | (0.4 | ) |   |   | — |   |   |   | (0.7 | ) |
| General      and administrative expenses (2)             |   |                    | (26.0   | )      |                       |   | (17.9 | ) |   |   | (46.4 | ) |   |   | (35.3 | ) |
| Corporate      interest expense                          |   |                    | (22.3   | )      |                       |   | (3.2 | ) |   |   | (46.7 | ) |   |   | (6.3 | ) |
| Total      contribution                                  |   | $                       | 104.0   |   |                       | $      | 62.9 |   |   | $ | 188.2 |   |   | $ | 114.9 |   |
| Operating      income                                    |   |                    |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                        |   | $                       | 67.0    |   |                       | $      | 56.3 |   |   | $ | 124.4 |   |   | $ | 108.5 |   |
| EG&G      Division                                   |   |                    | 32.7    |   |                       |   | 21.4 |   |   |   | 59.1 |   |   |   | 37.2 |   |
| Washington      Division                                 |   |                    | 55.2    |   |                       |   | 5.2 |   |   |   | 103.4 |   |   |   | 8.8 |   |
| Inter-segment      and other unallocated operating costs |   |                    | — |   |                       |   | (0.4 | ) |   |   | — |   |   |   | (0.7 | ) |
| General      and administrative expenses (2)             |   |                    | (20.5   | )      |                       |   | (14.0 | ) |   |   | (36.6 | ) |   |   | (27.6 | ) |
| Total      operating income                              |   | $                       | 134.4   |   |                       | $      | 68.5 |   |   | $ | 250.3 |   |   | $ | 126.2 |   |
| Depreciation      and amortization                       |   |                    |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| URS      Division                                        |   | $                       | 7.6     |   |                       | $      | 8.4 |   |   | $ | 16.6 |   |   | $ | 16.7 |   |
| EG&G      Division                                   |   |                    | 5.9     |   |                       |   | 1.2 |   |   |   | 11.6 |   |   |   | 2.1 |   |
| Washington      Division                                 |   |                    | 27.2    |   |                       |   | 0.2 |   |   |   | 40.0 |   |   |   | 0.4 |   |
| Corporate      and other                                 |   |                    | 2.2     |   |                       |   | 0.2 |   |   |   | 2.5 |   |   |   | 0.5 |   |
| Total      depreciation and amortization                 |   | $                       | 42.9    |   |                       | $      | 10.0 |   |   | $ | 70.7 |   |   | $ | 19.7 |   |

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

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

| (3)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the three and six months ended June 29, 2007 are not      comparable to the results for the three and six months ended June 27,      2008, and are comprised of the amounts that represent the result of the      realignment of our operations among our divisions as discussed      above. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Three      Months Ended June 27, 2008 (1) |    |
|-----------------------------------------------|--------|-------------------------------------------|---------|
| (In    millions)                              |   | URSDivision                               |    |   | EG&G      Division |   |   | Washington      Division |   |   | Corporate |   |   | Corporate      Interest Expense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                         | 69.7    |   |   | $ | 33.6 |   |   | $ | 49.0 |   |   | $ | (26.0 | ) |   | $ | (22.3 | ) |   | $ | — |   |   | $ | 104.0 |   |
| Minority      interests                       |   |                                      | (0.2    | ) |   |   | — |   |   |   | 7.7 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 7.5 |   |
| Unallocated      SFAS 123(R) expenses         |   |                                      | (2.6    | ) |   |   | (0.9 | ) |   |   | (1.7 | ) |   |   | 5.2 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                      | 0.1     |   |   |   | — |   |   |   | 0.2 |   |   |   | 0.3 |   |   |   | 22.3 |   |   |   | — |   |   |   | 22.9 |   |
| Operating      income (loss)                  |   | $                                         | 67.0    |   |   | $ | 32.7 |   |   | $ | 55.2 |   |   | $ | (20.5 | ) |   | $ | — |   |   | $ | — |   |   | $ | 134.4 |   |
|                                          |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Three      Months Ended June 29, 2007 (1) |    |
| (In    millions)                              |   | URSDivision                               |    |   | EG&G      Division |   |   | Washington      Division |   |   | Corporate |   |   | Corporate      Interest Expense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                         | 58.1    |   |   | $ | 22.6 |   |   | $ | 3.7 |   |   | $ | (17.9 | ) |   | $ | (3.2 | ) |   | $ | (0.4 | ) |   | $ | 62.9 |   |
| Minority      interests                       |   |                                      | — |   |   |   | — |   |   |   | 1.5 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1.5 |   |
| Unallocated      SFAS 123(R) expenses         |   |                                      | (3.0    | ) |   |   | (0.9 | ) |   |   | — |   |   |   | 3.9 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                      | 1.2     |   |   |   | (0.3 | ) |   |   | — |   |   |   | — |   |   |   | 3.2 |   |   |   | — |   |   |   | 4.1 |   |
| Operating      income (loss)                  |   | $                                         | 56.3    |   |   | $ | 21.4 |   |   | $ | 5.2 |   |   | $ | (14.0 | ) |   | $ | — |   |   | $ | (0.4 | ) |   | $ | 68.5 |   |

|                                          |   | Six      Months Ended June 29, 2008 (1) |    |
|-----------------------------------------------|--------|-----------------------------------------|---------|
| (In    millions)                              |   | URSDivision                             |    |   | EG&G      Division |   |   | Washington      Division |   |   | Corporate |   |   | Corporate      Interest Expense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                       | 128.4   |   |   | $ | 60.7 |   |   | $ | 92.2 |   |   | $ | (46.4 | ) |   | $ | (46.7 | ) |   | $ | — |   |   | $ | 188.2 |   |
| Minority      interests                       |   |                                    | — |   |   |   | — |   |   |   | 13.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 13.4 |   |
| Unallocated      SFAS 123(R) expenses         |   |                                    | (5.0    | ) |   |   | (1.7 | ) |   |   | (2.8 | ) |   |   | 9.5 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                    | 1.0     |   |   |   | 0.1 |   |   |   | 0.6 |   |   |   | 0.3 |   |   |   | 46.7 |   |   |   | — |   |   |   | 48.7 |   |
| Operating      income (loss)                  |   | $                                       | 124.4   |   |   | $ | 59.1 |   |   | $ | 103.4 |   |   | $ | (36.6 | ) |   | $ | — |   |   | $ | — |   |   | $ | 250.3 |   |
|                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the three and six months ended June 29, 2007 are not      comparable to the results for the three and six months ended June 27,      2008, and are comprised of the amounts that represent the result of the      realignment of our operations among our divisions as discussed      above. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Six      Months Ended June 29, 2007 (1) |   |
|-----------------------------------------------|--------|-----------------------------------------|--------|
| (In    millions)                              |   | URSDivision                             |   |   | EG&G      Division |   |   | Washington      Division |   |   | Corporate |   |   | Corporate      Interest Expense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                                  |   | $                                       | 111.6  |   |   | $ | 39.3 |   |   | $ | 6.3 |   |   | $ | (35.3 | ) |   | $ | (6.3 | ) |   | $ | (0.7 | ) |   | $ | 114.9 |   |
| Minority      interests                       |   |                                    | 0.8    |   |   |   | — |   |   |   | 2.5 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3.3 |   |
| Unallocated      SFAS 123(R) expenses         |   |                                    | (5.7   | ) |   |   | (1.4 | ) |   |   | — |   |   |   | 7.1 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      miscellaneous unallocated expenses |   |                                    | 1.8    |   |   |   | (0.7 | ) |   |   | — |   |   |   | 0.6 |   |   |   | 6.3 |   |   |   | — |   |   |   | 8.0 |   |
| Operating      income (loss)                  |   | $                                       | 108.5  |   |   | $ | 37.2 |   |   | $ | 8.8 |   |   | $ | (27.6 | ) |   | $ | — |   |   | $ | (0.7 | ) |   | $ | 126.2 |   |

| (1)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the three and six months ended June 29, 2007 are not      comparable to the results for the three and six months ended June 27,      2008, and are comprised of the amounts that represent the result of the      realignment of our operations among our divisions as discussed      above. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (In      millions)       |   | June      27, 2008 |     |   | December      28, 2007 |   |
|--------------------------|--------|--------------------|----------|--------|------------------------|--------|
| URS      Division        |   | $                  | 1,685.2  |   |                   | $      | 1,733.7 |   |
| EG&G      Division   |   |               | 919.7    |   |                   |   | 918.2 |   |
| Washington      Division |   |               | 4,120.3  |   |                   |   | 4,060.7 |   |
| Corporate                |   |               | 5,020.4  |   |                   |   | 4,889.6 |   |
| Eliminations             |   |               | (4,722.0 | )      |                   |   | (4,672.2 | ) |
| Total      assets        |   | $                  | 7,023.6  |   |                   | $      | 6,930.0 |   |

----

|                                                                                                                                                                                                                                  |   | Three      Months Ended |    |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
| (In      millions)                                                                                                                                                                                                                    |   | June      27,2008       |    |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| Revenues                                                                                                                                                                                                                              |   |                    |    |   |                  |   |   |   |   |   |   |   |
| United      States                                               |   | $                       | 2,287.2 |   |                  | $      | 1,124.9 |   |   | $ | 4,349.7 |   |   | $ | 2,150.4 |   |
| International                                                    |   |                    | 249.4   |   |                  |   | 124.8 |   |   |   | 450.7 |   |   |   | 238.9 |   |
| Eliminations                                                     |   |                    | (5.7    | )      |                  |   | (6.1 | ) |   |   | (10.4 | ) |   |   | (13.7 | ) |
| Total      revenues                                    |   | $                       | 2,530.9 |   |                  | $      | 1,243.6 |   |   | $ | 4,790.0 |   |   | $ | 2,375.6 |   |

| (In      millions)                                                                                                                                                                                                                                                                                                                                                       |   | June      27,2008 |   |   | December      28, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------------|--------|
| Property      and equipment at cost, net                                                                                                                                                                                                                                                                                                                                 |   |              |   |   |                   |   |
| United      States                                                          |   | $                 | 256.1  |   |                   | $      | 254.4 |   |
| International                                                               |   |              | 98.8   |   |                   |   | 103.5 |   |
| Total      property and equipment at cost, net                                                                                                                                                                                                                                                                                                                           |   | $                 | 354.9  |   |                   | $      | 357.9 |   |

|                     |   | Three      Months Ended |   |   | Six      Months Ended |   |
|--------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In      millions)       |   | June      27,2008       |   |   | June      29,2007     |   |   | June      27,2008 |   |   | June      29,2007 |   |
| The      U.S. Army (1)   |   |                    |   |   |                  |   |   |   |   |   |   |   |
| URS      Division        |   | $                       | 27.4   |   |                  | $      | 30.3 |   |   | $ | 55.5 |   |   | $ | 60.7 |   |
| EG&G      Division   |   |                    | 360.1  |   |                  |   | 191.1 |   |   |   | 706.3 |   |   |   | 365.9 |   |
| Washington      Division |   |                    | 33.8   |   |                  |   | — |   |   |   | 58.8 |   |   |   | — |   |
| Total      U.S. Army     |   | $                       | 421.3  |   |                  | $      | 221.4 |   |   | $ | 820.6 |   |   | $ | 426.6 |   |

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

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NOTE 9. COMMITMENTS AND CONTINGENCIES

| ·   | Saudi Arabia: One of      our 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.  In addition, in 2004, the Ministry received a      payment under a performance bond amounting to approximately $5.6      million that was outstanding under the F-5 contract.  The      following legal proceedings ensued: |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 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 (the “Normandy      Project”).  Radian subcontracted a portion of these services to      Mouawad – Edde SARL.  The contract with Solidere required the      posting of a Letter of Guarantee, which was issued by Saradar Bank,      Sh.M.L. ("Saradar") for $8.5 million.  Solidere drew upon the      full value of the Letter of Guarantee.  The contract also      provided for the purchase of project-specific insurance.  The      project-specific insurance policy was issued by Alpina Insurance Company      ("Alpina"). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 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 the      Expressway. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 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, 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, which URS Group, Inc. intends to      oppose.  URS Group, Inc. intends to continue its vigorous      attempt to collect the remaining contract cost  overruns. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Minneapolis Bridge: The      collapse of the I-35W Bridge in Minneapolis, Minnesota, on August 1, 2007,      has been widely publicized.  In 2003, the Minnesota Department      of Transportation retained us to provide engineering analyses of the I-35W      Bridge.  We had issued draft reports pursuant to this engagement      and our services to the Minnesota Department of Transportation were      ongoing at the time of the collapse.  We were not involved in      the original design or construction of the I-35W Bridge, nor were we      involved in any of the maintenance and construction work being performed      on the bridge when the collapse occurred.  At this time, there      is insufficient information to determine the definitive cause or causes      of, or potential liabilities associated with, the collapse.  It      is possible that claims relating to the collapse will be made against us      because of our work for the Minnesota Department of      Transportation.  The outcome of any such claims, if made, cannot      be determined at this time. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | 130 Liberty Street: On      August 18, 2007, two New York City firemen lost their lives 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 February and April of 2008, URS Corporation – New York      was sued in the New York State Supreme Court by the estates of the two      firemen for negligence, public and private nuisance, and wrongful death,      as well as for statutory violations of various local and state public      safety codes.  Both estates are alleging punitive damages and      one estate has asked for damages of approximately $50      million.  In May of 2008, URS Corporation – New York was sued in      the New York State Supreme Court for an unspecified amount of damages by      four firemen and their spouses for personal injury to the firemen      occurring during the fire.  The complaint alleges negligence,      public and private nuisance, and violations of various local and state      public safety codes. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | USAID Egyptian      Projects:  In March 2003, WGI, a 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 U.S. 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 has a 50%      interest in a joint venture that is performing a $401 million fixed-price      highway and toll road project in California that was approximately 97%      complete as of June 27, 2008.  Prior to the acquisition of WGI,      WGI 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.  In many instances, these developments were      unanticipated.  We expect that, when the project is completed,      our investment in the joint venture will be approximately $30      million.  It remains possible that the joint venture may incur      additional losses and, if the joint venture is unsuccessful in recovering      at least a portion of its claims, additional charges will be      required.  These matters are among the numerous claims in      dispute made by the joint venture against the project      owner.  Many of the highway claims are being pursued in the      Superior Court of San Diego County, and many of the toll road claims, per      the toll road agreement, are being pursued in state      arbitration.  The remainder of the claims are being pursued      under the contractually prescribed dispute review      procedures.  If the claims are not resolved through these      procedures, the claims will be joined in the existing litigation or      arbitration proceedings. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Common Sulfur Project:      One of our wholly owned subsidiaries, WGI – Middle East, Inc., 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 treat and distribute sulfur      produced by a new Liquid Natural Gas (“LNG”) processing facility 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 $20 million against the      consortium if various phases of the project are not completed by certain      dates.  If such damages were to be assessed, a portion may be      attributable to WGI – Middle East, Inc.  No potential liquidated      damages have been included in the estimated contract loss referenced below      primarily due to the impacts of concurrent delays on the LNG      facility. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|---------|-------------------------------------------------------------------------------------------------------|

----

|                                                                                                          |   | Three      Months Ended |    |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
| (In      millions, except percentages)                                                                        |   | June      27,2008       |    |   | June      29,2007      (1)(pro      forma combined) |   |   | Increase |   |   | Percentage      Increase |   |
|                                                                                                          |   |                    |    |
|     Revenues                                                                              |   | $                       | 2,530.9 |   |   | $ | 2,076.4 |   |   | $ | 454.5 |   |   |   | 21.9 | % |
|                                                                                                          |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      schedule of revenues for the three months ended June 29,    2007:                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |
| Pro      forma combined revenues (1)                                                                          |   |                    | $       | 2,076.4 |   |   |   |   |   |   |   |   |   |
| Add:      revenue adjustments to conform WGI's revenues to reflect the use      of the equity method (1) |   |                    |    | 119.1 |   |   |   |   |   |   |   |   |   |
| Less:      WGI historical revenues                                                                            |   |                    |    | (951.9 | ) |   |   |   |   |   |   |   |   |
| URS      historical revenues                                                                                  |   |                    | $       | 1,243.6 |   |   | $ | 1,287.3 |   |   |   | 103.5 | % |

|                                                                                                     |   | Six      Months Ended |    |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|
| (In      millions, except percentages)                                                                   |   | June      27,2008     |    |   | June      29,2007      (1)(pro      forma combined) |   |   | Increase |   |   | Percentage      Increase |   |
|                                                                                                     |   |                  |    |
|          Revenues                                                                         |   | $                     | 4,790.0 |   |   | $ | 3,934.4 |   |   | $ | 855.6 |   |   |   | 21.7 | % |
|                                                                                                     |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      schedule of revenues for the six months ended June 29,    2007:                      |   |                  |    |   |   |   |   |   |   |   |   |   |   |
| Pro      forma combined revenues (1)                                                                     |   |                  | $       | 3,934.4 |   |   |   |   |   |   |   |   |   |
| Add:      revenue adjustments to conform WGI's revenues to reflect the use of the      equity method (1) |   |                  |    | 230.5 |   |   |   |   |   |   |   |   |   |
| Less:      WGI historical revenues                                                                       |   |                  |    | (1,789.3 | ) |   |   |   |   |   |   |   |   |
| URS      historical revenues                                                                             |   |                  | $       | 2,375.6 |   |   | $ | 2,414.4 |   |   |   | 101.6 | % |

|   | (1) | The      pro forma combined revenues presented in this discussion are calculated      based on the definition of pro forma combined revenues under Statement of      Financial Accounting Standards (“SFAS”) No. 141, “Business Combinations”      (“SFAS 141”) presented in Note 2, “Acquisition.”  It includes      pro forma adjustments of $119.1 million and $230.5 million to revenues for      the three and six months ended June 29, 2007,      respectively.  These adjustments were made to conform WGI’s      reported revenues related to unconsolidated joint ventures, previously      accounted for using proportionate consolidation, to reflect the use of the      equity method. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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| (In      billions)             |   |   |   |
|--------------------------------|--------|--------|--------|
| As of June 27, 2008            |   | Total  |   |
| Backlog:                       |   |   |   |
| Power                          |   | $      | 1.4    |   |
| Infrastructure                 |   |   | 2.5    |   |
| Industrial      and commercial |   |   | 3.6    |   |
| Federal                        |   |   | 10.4   |   |
| Total      Backlog             |   | $      | 17.9   |   |

| (In      billions)As      of June 27, 2008 |   | URSDivision |   |   | EG&G      Division |   |    | Washington      Division |   |   | Total |   |
|--------------------------------------------|--------|-------------|--------|--------|------------------------|--------|---------|--------------------------|--------|--------|-------|--------|
| Backlog                                    |   | $           | 2.9    |   |                   | $      | 8.2     |                     |   | $      | 6.8   |   |   | $ | 17.9 |   |
| Designations                               |   |        | 1.4    |   |                   |   | — |                     |   |   | 1.7   |   |   |   | 3.1 |   |
| Option      years                          |   |        | 0.9    |   |                   |   | 2.3     |                     |   |   | 1.1   |   |   |   | 4.3 |   |
| Indefinite      delivery contracts         |   |        | 3.7    |   |                   |   | 1.1     |                     |   |   | 0.6   |   |   |   | 5.4 |   |
| Total      book of business                |   | $           | 8.9    |   |                   | $      | 11.6    |                     |   | $      | 10.2  |   |   | $ | 30.7 |   |

----

|                                                                            |   | Three      Months Ended |     |
|---------------------------------------------------------------------------------|--------|-------------------------|----------|
|          (In millions, except percentages and per share amounts) |   | June      27,2008       |     |   | June      29,2007 |   |   | Increase |   |   | Percentage      Increase |   |
| Revenues                                                                        |   | $                       | 2,530.9  |   |   | $ | 1,243.6 |   |   | $ | 1,287.3 |   |   |   | 103.5 | % |
| Cost      of revenues                                                           |   |                    | (2,403.0 | ) |   |   | (1,164.3 | ) |   |   | 1,238.7 |   |   |   | 106.4 | % |
| General      and administrative expenses                                        |   |                    | (20.5    | ) |   |   | (14.0 | ) |   |   | 6.5 |   |   |   | 46.4 | % |
| Equity      in income of unconsolidated affiliates                              |   |                    | 27.0     |   |   |   | 3.2 |   |   |   | 23.8 |   |   |   | 743.8 | % |
| Operating      income                                                           |   |                    | 134.4    |   |   |   | 68.5 |   |   |   | 65.9 |   |   |   | 96.2 | % |
| Interest      expense                                                           |   |                    | (23.1    | ) |   |   | (4.1 | ) |   |   | 19.0 |   |   |   | 463.4 | % |
| Income      before income taxes and minority interests                          |   |                    | 111.3    |   |   |   | 64.4 |   |   |   | 46.9 |   |   |   | 72.8 | % |
| Income      tax expense                                                         |   |                    | (47.5    | ) |   |   | (26.7 | ) |   |   | 20.8 |   |   |   | 77.9 | % |
| Minority      interests in income of consolidated subsidiaries, net of    tax   |   |                    | (4.4     | ) |   |   | (0.9 | ) |   |   | 3.5 |   |   |   | 388.9 | % |
| Net      income                                                                 |   | $                       | 59.4     |   |   | $ | 36.8 |   |   | $ | 22.6 |   |   |   | 61.4 | % |
|                                                                            |   |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                                                 |   | $                       | .72      |   |   | $ | .70 |   |   | $ | .02 |   |   |   | 2.9 | % |

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008       |   |   | June      29,2007 |   |   | Increase |   |   | Percentage      Increase |   |
| Revenues                                 |   |                    |   |
| Power      sector                        |   | $                       | 507    |   |   | $ | 167 |   |   | $ | 340 |   |   |   | 203.6 | % |
| Infrastructure      sector               |   |                    | 451    |   |   |   | 316 |   |   |   | 135 |   |   |   | 42.7 | % |
| Federal      sector                      |   |                    | 829    |   |   |   | 511 |   |   |   | 318 |   |   |   | 62.2 | % |
| Industrial      and commercial sector    |   |                    | 744    |   |   |   | 250 |   |   |   | 494 |   |   |   | 197.6 | % |
| Total      revenues, net of eliminations |   | $                       | 2,531  |   |   | $ | 1,244 |   |   | $ | 1,287 |   |   |   | 103.5 | % |

----

----

----

| (In      millions, except percentages)                                                         |   | Revenues |    |   | Cost      of Revenues |   |     | General      and Administrative Expenses |   |   | Equity      in Income of Unconsolidated Affiliates |   |   | Operating      Income (Loss) |    |
|------------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------------------|--------|----------|------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------|---------|
|                                                                                           |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |
| Three months ended June 27,      2008                                                          |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |
| URS      Division                                                                              |   | $        | 887.6   |   |                  | $      | (823.0   | )                                        |   | $      | —                                            |   |   | $                            | 2.4     |   |   | $ | 67.0 |   |
| EG&G      Division                                                                         |   |     | 576.2   |   |                  |   | (545.4   | )                                        |   |   | —                                            |   |   |                         | 1.9     |   |   |   | 32.7 |   |
| Washington      Division                                                                       |   |     | 1,081.1 |   |                  |   | (1,048.6 | )                                        |   |   | —                                            |   |   |                         | 22.7    |   |   |   | 55.2 |   |
| Eliminations                                                                                   |   |     | (14.0   | )      |                  |   | 14.0     |                                     |   |   | —                                            |   |   |                         | — |   |   |   | — |   |
| Corporate                                                                                      |   |     | — |   |                  |   | —  |                                     |   |   | (20.5                                              | )      |   |                         | — |   |   |   | (20.5 | ) |
| Total                                                                                          |   | $        | 2,530.9 |   |                  | $      | (2,403.0 | )                                        |   | $      | (20.5                                              | )      |   | $                            | 27.0    |   |   | $ | 134.4 |   |
|                                                                                           |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |   |   |   |
| Three months ended June 29, 2007      (1)                                                      |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                              |   | $        | 802.1   |   |                  | $      | (747.6   | )                                        |   | $      | —                                            |   |   | $                            | 1.8     |   |   | $ | 56.3 |   |
| EG&G      Division                                                                         |   |     | 370.5   |   |                  |   | (350.5   | )                                        |   |   | —                                            |   |   |                         | 1.4     |   |   |   | 21.4 |   |
| Washington      Division                                                                       |   |     | 98.3    |   |                  |   | (93.1    | )                                        |   |   | —                                            |   |   |                         | — |   |   |   | 5.2 |   |
| Eliminations                                                                                   |   |     | (27.3   | )      |                  |   | 26.9     |                                     |   |   | —                                            |   |   |                         | — |   |   |   | (0.4 | ) |
| Corporate                                                                                      |   |     | — |   |                  |   | —  |                                     |   |   | (14.0                                              | )      |   |                         | — |   |   |   | (14.0 | ) |
| Total                                                                                          |   | $        | 1,243.6 |   |                  | $      | (1,164.3 | )                                        |   | $      | (14.0                                              | )      |   | $                            | 3.2     |   |   | $ | 68.5 |   |
|                                                                                           |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |   |   |   |
| Increase (decrease) for the three months ended      June 27, 2008 and June 29, 2007            |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                              |   | $        | 85.5    |   |                  | $      | 75.4     |                                     |   | $      | —                                            |   |   | $                            | 0.6     |   |   | $ | 10.7 |   |
| EG&G      Division                                                                         |   |     | 205.7   |   |                  |   | 194.9    |                                     |   |   | —                                            |   |   |                         | 0.5     |   |   |   | 11.3 |   |
| Washington      Division                                                                       |   |     | 982.8   |   |                  |   | 955.5    |                                     |   |   | —                                            |   |   |                         | 22.7    |   |   |   | 50.0 |   |
| Eliminations                                                                                   |   |     | 13.3    |   |                  |   | 12.9     |                                     |   |   | —                                            |   |   |                         | — |   |   |   | 0.4 |   |
| Corporate                                                                                      |   |     | — |   |                  |   | —  |                                     |   |   | 6.5                                                |   |   |                         | — |   |   |   | (6.5 | )  |
| Total                                                                                          |   | $        | 1,287.3 |   |                  | $      | 1,238.7  |                                     |   | $      | 6.5                                                |   |   | $                            | 23.8    |   |   | $ | 65.9 |   |
|                                                                                           |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |   |   |   |
| Percentage increase (decrease) for the three      months ended June 27, 2008 and June 29, 2007 |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                              |   |     | 10.7    | %      |                  |   | 10.1     | %                                        |   |   | —                                            |   |   |                         | 33.3    | % |   |   | 19.0 | % |
| EG&G      Division                                                                         |   |     | 55.5    | %      |                  |   | 55.6     | %                                        |   |   | —                                            |   |   |                         | 35.7    | % |   |   | 52.8 | % |
| Washington      Division                                                                       |   |     | 999.8   | %      |                  |   | 1026.3   | %                                        |   |   | —                                            |   |   |                         | — |   |   |   | 961.5 | % |
| Eliminations                                                                                   |   |     | (48.7   | %)     |                  |   | (48.0    | %)                                       |   |   | —                                            |   |   |                         | — |   |   |   | (100.0 | %) |
| Corporate                                                                                      |   |     | — |   |                  |   | —  |                                     |   |   | 46.4                                               | %      |   |                         | — |   |   |   | 46.4 | % |
| Total                                                                                          |   |     | 103.5   | %      |                  |   | 106.4    | %                                        |   |   | 46.4                                               | %      |   |                         | 743.8   | % |   |   | 96.2 | % |
|                                                                                           |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |   |   |   |

| (1)   | We revised and conformed the prior period’s amounts to our      current year’s segment presentation.  Because the Washington      Division did not exist as one of our divisions before November 15, 2007,      the amounts presented for the three months ended June 29, 2007 are not      comparable to the results for the three months ended June 27, 2008, and      are comprised of the amounts that represent the result of the realignment      of our operations among our divisions as discussed      previously. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008       |   |   | June      29.2007 |   |   | Increase/(Decrease) |   |   | Percentage      Increase/(Decrease) |   |
| Revenues                                 |   |                    |   |
| Power      sector                        |   | $                       | 97     |   |   | $ | 107 |   |   | $ | (10 | ) |   |   | (9.3 | %) |
| Infrastructure      sector               |   |                    | 364    |   |   |   | 316 |   |   |   | 48 |   |   |   | 15.2 | % |
| Federal      sector                      |   |                    | 146    |   |   |   | 129 |   |   |   | 17 |   |   |   | 13.2 | % |
| Industrial      and commercial sector    |   |                    | 273    |   |   |   | 248 |   |   |   | 25 |   |   |   | 10.1 | % |
| Total revenues, net of      eliminations |   | $                       | 880    |   |   | $ | 800 |   |   | $ | 80 |   |   |   | 10.0 | % |

----

----

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008       |   |   | June      29,2007      (1) |   |   | Increase |   |   | Percentage      increase |   |
| Revenues                                 |   |                    |   |
| Power      sector                        |   | $                       | 410    |   |   | $ | 60 |   |   | $ | 350 |   |   |   | 583.3 | % |
| Infrastructure      sector               |   |                    | 87     |   |   |   | — |   |   |   | 87 |   |   |   | 100.0 | % |
| Federal      sector                      |   |                    | 108    |   |   |   | 13 |   |   |   | 95 |   |   |   | 730.8 | % |
| Industrial      and commercial sector    |   |                    | 471    |   |   |   | 2 |   |   |   | 469 |   |   |   | 23450.0 | % |
| Total revenues, net of      eliminations |   | $                       | 1,076  |   |   | $ | 75 |   |   | $ | 1,001 |   |   |   | 1334.7 | % |
|                                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the second quarter of fiscal 2007 are not comparable to the      results for the second quarter of fiscal 2008, and are comprised of the      amounts that represent the result of the realignment of our operations      among our divisions as discussed previously. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                          |   | Six      Months Ended |     |
|-------------------------------------------------------------------------------|--------|-----------------------|----------|
| (In      millions, except percentages and per share amounts)                  |   | June      27,2008     |     |   | June      29,2007 |   |   | Increase |   |   | Percentage      Increase |   |
| Revenues                                                                      |   | $                     | 4,790.0  |   |   | $ | 2,375.6 |   |   | $ | 2,414.4 |   |   |   | 101.6 | % |
| Cost      of revenues                                                         |   |                  | (4,559.8 | ) |   |   | (2,228.6 | ) |   |   | 2,331.2 |   |   |   | 104.6 | % |
| General      and administrative expenses                                      |   |                  | (36.6    | ) |   |   | (27.6 | ) |   |   | 9.0 |   |   |   | 32.6 | % |
| Equity      in income of unconsolidated affiliates                            |   |                  | 56.7     |   |   |   | 6.8 |   |   |   | 49.9 |   |   |   | 733.8 | % |
| Operating      income                                                         |   |                  | 250.3    |   |   |   | 126.2 |   |   |   | 124.1 |   |   |   | 98.3 | % |
| Interest      expense                                                         |   |                  | (48.7    | ) |   |   | (8.0 | ) |   |   | 40.7 |   |   |   | 508.8 | % |
| Income      before income taxes and minority interests                        |   |                  | 201.6    |   |   |   | 118.2 |   |   |   | 83.4 |   |   |   | 70.6 | % |
| Income      tax expense                                                       |   |                  | (85.0    | ) |   |   | (49.0 | ) |   |   | 36.0 |   |   |   | 73.5 | % |
| Minority      interests in income of consolidated subsidiaries, net of    tax |   |                  | (7.8     | ) |   |   | (2.0 | ) |   |   | 5.8 |   |   |   | 290.0 | % |
| Net      income                                                               |   | $                     | 108.8    |   |   | $ | 67.2 |   |   | $ | 41.6 |   |   |   | 61.9 | % |
|                                                                          |   |                  |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                                               |   | $                     | 1.32     |   |   | $ | 1.28 |   |   | $ | .04 |   |   |   | 3.1 | % |

|                                     |   | Six      Months Ended |   |
|------------------------------------------|--------|-----------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008     |   |   | June      29,2007 |   |   | Increase |   |   | Percentage      Increase |   |
| Revenues                                 |   |                  |   |
| Power      sector                        |   | $                     | 907    |   |   | $ | 308 |   |   | $ | 599 |   |   |   | 194.5 | % |
| Infrastructure      sector               |   |                  | 873    |   |   |   | 607 |   |   |   | 266 |   |   |   | 43.8 | % |
| Federal      sector                      |   |                  | 1,652  |   |   |   | 971 |   |   |   | 681 |   |   |   | 70.1 | % |
| Industrial      and commercial sector    |   |                  | 1,358  |   |   |   | 490 |   |   |   | 868 |   |   |   | 177.1 | % |
| Total      revenues, net of eliminations |   | $                     | 4,790  |   |   | $ | 2,376 |   |   | $ | 2,414 |   |   |   | 101.6 | % |

----

----

----

| (In      millions, except percentages)                                                       |   | Revenues |    |   | Cost      of Revenues |   |     | General      and Administrative Expenses |   |   | Equity      in Income of Unconsolidated Affiliates |   |   | Operating      Income (Loss) |    |
|----------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------------------|--------|----------|------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------|---------|
|                                                                                         |   |
| Six months ended June 27,    2008                                                            |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |
| URS      Division                                                                            |   | $        | 1,706.8 |   |                  | $      | (1,586.7 | )                                        |   | $      | —                                            |   |   | $                            | 4.3     |   |   | $ | 124.4 |   |
| EG&G      Division                                                                       |   |     | 1,125.5 |   |                  |   | (1,070.0 | )                                        |   |   | —                                            |   |   |                         | 3.6     |   |   |   | 59.1 |   |
| Washington      Division                                                                     |   |     | 1,982.7 |   |                  |   | (1,928.1 | )                                        |   |   | —                                            |   |   |                         | 48.8    |   |   |   | 103.4 |   |
| Eliminations                                                                                 |   |     | (25.0   | )      |                  |   | 25.0     |                                     |   |   | —                                            |   |   |                         | — |   |   |   | — |   |
| Corporate                                                                                    |   |     | — |   |                  |   | —  |                                     |   |   | (36.6                                              | )      |   |                         | — |   |   |   | (36.6 | ) |
| Total                                                                                        |   | $        | 4,790.0 |   |                  | $      | (4,559.8 | )                                        |   | $      | (36.6                                              | )      |   | $                            | 56.7    |   |   | $ | 250.3 |   |
|                                                                                         |   |
| Six months ended June 29, 2007      (1)                                                      |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                            |   | $        | 1,529.4 |   |                  | $      | (1,424.9 | )                                        |   | $      | —                                            |   |   | $                            | 4.0     |   |   | $ | 108.5 |   |
| EG&G      Division                                                                       |   |     | 708.4   |   |                  |   | (674.0   | )                                        |   |   | —                                            |   |   |                         | 2.8     |   |   |   | 37.2 |   |
| Washington      Division                                                                     |   |     | 168.0   |   |                  |   | (159.2   | )                                        |   |   | —                                            |   |   |                         | — |   |   |   | 8.8 |   |
| Eliminations                                                                                 |   |     | (30.2   | )      |                  |   | 29.5     |                                     |   |   | —                                            |   |   |                         | — |   |   |   | (0.7 | ) |
| Corporate                                                                                    |   |     | — |   |                  |   | —  |                                     |   |   | (27.6                                              | )      |   |                         | — |   |   |   | (27.6 | ) |
| Total                                                                                        |   | $        | 2,375.6 |   |                  | $      | (2,228.6 | )                                        |   | $      | (27.6                                              | )      |   | $                            | 6.8     |   |   | $ | 126.2 |   |
|                                                                                         |   |
| Increase (decrease) for the six months ended June      27, 2008 and June 29, 2007            |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                            |   | $        | 177.4   |   |                  | $      | 161.8    |                                     |   | $      | —                                            |   |   | $                            | 0.3     |   |   | $ | 15.9 |   |
| EG&G      Division                                                                       |   |     | 417.1   |   |                  |   | 396.0    |                                     |   |   | —                                            |   |   |                         | 0.8     |   |   |   | 21.9 |   |
| Washington      Division                                                                     |   |     | 1,814.7 |   |                  |   | 1,768.9  |                                     |   |   | —                                            |   |   |                         | 48.8    |   |   |   | 94.6 |   |
| Eliminations                                                                                 |   |     | 5.2     |   |                  |   | 4.5      |                                     |   |   | —                                            |   |   |                         | — |   |   |   | 0.7 |   |
| Corporate                                                                                    |   |     | — |   |                  |   | —  |                                     |   |   | 9.0                                                |   |   |                         | — |   |   |   | (9.0 | )  |
| Total                                                                                        |   | $        | 2,414.4 |   |                  | $      | 2,331.2  |                                     |   | $      | 9.0                                                |   |   | $                            | 49.9    |   |   | $ | 124.1 |   |
|                                                                                         |   |
| Percentage increase (decrease) for the six months      ended June 27, 2008 and June 29, 2007 |   |     |    |   |                  |   |     |                                     |   |   |                                               |   |   |                         |    |   |   |
| URS      Division                                                                            |   |     | 11.6    | %      |                  |   | 11.4     | %                                        |   |   | —                                            |   |   |                         | 7.5     | % |   |   | 14.7 | % |
| EG&G      Division                                                                       |   |     | 58.9    | %      |                  |   | 58.8     | %                                        |   |   | —                                            |   |   |                         | 28.6    | % |   |   | 58.9 | % |
| Washington      Division                                                                     |   |     | 1080.2  | %      |                  |   | 1111.1   | %                                        |   |   | —                                            |   |   |                         | — |   |   |   | 1075.0 | % |
| Eliminations                                                                                 |   |     | (17.2   | %)     |                  |   | (15.3    | %)                                       |   |   | —                                            |   |   |                         | — |   |   |   | (100.0 | %) |
| Corporate                                                                                    |   |     | — |   |                  |   | —  |                                     |   |   | 32.6                                               | %      |   |                         | — |   |   |   | 32.6 | % |
| Total                                                                                        |   |     | 101.6   | %      |                  |   | 104.6    | %                                        |   |   | 32.6                                               | %      |   |                         | 733.8   | % |   |   | 98.3 | % |

| (1)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the six months ended June 29, 2007 are not comparable to the      results for the six months ended June 27, 2008, and are comprised of the      amounts that represent the result of the realignment of our operations      among our divisions as discussedpreviously. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | Six      Months Ended |   |
|------------------------------------------|--------|-----------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008     |   |   | June      29.2007 |   |   | Increase/(Decrease) |   |   | Percentage      Increase/(Decrease) |   |
| Revenues                                 |   |                  |   |
| Power      sector                        |   | $                     | 149    |   |   | $ | 187 |   |   | $ | (38 | ) |   |   | (20.3 | %) |
| Infrastructure      sector               |   |                  | 702    |   |   |   | 605 |   |   |   | 97 |   |   |   | 16.0 | % |
| Federal      sector                      |   |                  | 304    |   |   |   | 247 |   |   |   | 57 |   |   |   | 23.1 | % |
| Industrial      and commercial sector    |   |                  | 543    |   |   |   | 486 |   |   |   | 57 |   |   |   | 11.7 | % |
| Total revenues, net of      eliminations |   | $                     | 1,698  |   |   | $ | 1,525 |   |   | $ | 173 |   |   |   | 11.3 | % |

----

----

|                                     |   | Six      Months Ended |   |
|------------------------------------------|--------|-----------------------|--------|
| (In      millions, except percentages)   |   | June      27,2008     |   |   | June      29,2007      (1) |   |   | Increase |   |   | Percentage      increase |   |
| Revenues                                 |   |                  |   |
| Power      sector                        |   | $                     | 758    |   |   | $ | 121 |   |   | $ | 637 |   |   |   | 526.5 | % |
| Infrastructure      sector               |   |                  | 171    |   |   |   | 2 |   |   |   | 169 |   |   |   | 8450.0 | % |
| Federal      sector                      |   |                  | 224    |   |   |   | 18 |   |   |   | 206 |   |   |   | 1144.4 | % |
| Industrial      and commercial sector    |   |                  | 815    |   |   |   | 4 |   |   |   | 811 |   |   |   | 20275.0 | % |
| Total revenues, net of      eliminations |   | $                     | 1,968  |   |   | $ | 145 |   |   | $ | 1,823 |   |   |   | 1257.2 | % |
|                                     |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | We      revised and conformed the prior period’s amounts to our current year’s      segment presentation.  Because the Washington Division did not      exist as one of our divisions before November 15, 2007, the amounts      presented for the second quarter of fiscal 2007 are not comparable to the      results for the second quarter of fiscal 2008, and are comprised of the      amounts that represent the result of the realignment of our operations      among our divisions as discussedpreviously. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

LIQUIDITY AND CAPITAL RESOURCES

|                                      |   | Six      Months Ended |   |
|-------------------------------------------|--------|-----------------------|--------|
| (In      millions)                        |   | June      27,2008     |   |   | June      29,2007 |   |
| Cash      flows from operating activities |   | $                     | 199.0  |   |   | $ | 24.7 |   |
| Cash      flows from investing activities |   |                  | (60.7  | ) |   |   | (13.2 | ) |
| Cash      flows from financing activities |   |                  | (116.9 | ) |   |   | (37.5 | ) |

| ·   | an      increase in net income; |
|--------------------|---------------------------------|

| ·   | a      decrease in income tax payments resulting from the utilization of tax net      operating losses from the WGI acquisition;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      increase in insurance reserve, offset, in part,  by; |
|--------------------|--------------------------------------------------------------|

| ·   | the      timing of payments from clients on accounts  receivables; |
|--------------------|--------------------------------------------------------------------|

| ·   | the      timing of payments to vendors and subcontractors;  and |
|--------------------|-----------------------------------------------------------------|

| ·   | an      increase in interest payments. |
|--------------------|----------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                  |   | 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)                                                                                                                                                                                                                                                                                                                         |   | $                                           | 1,175.0 |   |   | $ | — |   |   | $ | 123.7 |   |   | $ | 1,051.3 |   |   | $ | — |   |   | $ | — |   |
| Capital      lease obligations and equipment notes (1)                                                                                                                                                                                                                                                                                                |   |                                        | 20.3    |   |   |   | 8.6 |   |   |   | 9.1 |   |   |   | 2.6 |   |   |   | — |   |   |   | — |   |
| Notes      payable, foreign credit lines and other indebtedness (1)                                                                                                                                                                                                                                                                                   |   |                                        | 30.8    |   |   |   | 9.6 |   |   |   | 15.9 |   |   |   | 5.3 |   |   |   | — |   |   |   | — |   |
| Total      debt                                                                                                                                                                                                                                                                                                                                       |   |                                        | 1,226.1 |   |   |   | 18.2 |   |   |   | 148.7 |   |   |   | 1,059.2 |   |   |   | — |   |   |   | — |   |
| Operating      lease obligations (2)                                                                                                                                                                                                                                                                                                                  |   |                                        | 603.6   |   |   |   | 152.0 |   |   |   | 247.5 |   |   |   | 134.8 |   |   |   | 69.3 |   |   |   | — |   |
| Pension      and other retirement plans funding requirements (3)                                                                                                                                                                                                                                                                                      |   |                                        | 250.5   |   |   |   | 35.3 |   |   |   | 52.6 |   |   |   | 41.7 |   |   |   | 120.9 |   |   |   | — |   |
| Purchase      obligations (4)                                                                                                                                                                                                                                                                                                                         |   |                                        | 15.6    |   |   |   | 6.3 |   |   |   | 9.3 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Interest      (5)                                                       |   |                                        | 247.2   |   |   |   | 70.5 |   |   |   | 120.9 |   |   |   | 55.8 |   |   |   | — |   |   |   | — |   |
| Asset      retirement obligations (6)                                                                                                                                                                                                                                                                                                                 |   |                                        | 4.7     |   |   |   | 0.9 |   |   |   | 0.4 |   |   |   | 1.1 |   |   |   | 2.3 |   |   |   | — |   |
| Other      contractual obligations (7)                                                                                                                                                                                                                                                                                                                |   |                                        | 35.4    |   |   |   | 11.1 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 24.3 |   |
| Total      contractual obligations                                                                                                                                                                                                                                                                                                                    |   | $                                           | 2,383.1 |   |   | $ | 294.3 |   |   | $ | 579.4 |   |   | $ | 1,292.6 |   |   | $ | 192.5 |   |   | $ | 24.3 |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Amounts      shown exclude unamortized debt issuance costs of $18.2 million for the      2007 Credit Facility.  For capital lease obligations, amounts      shown exclude interest of $1.8million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (4)   | Purchase      obligations consist primarily of software maintenance      contracts. |
|-----------------|-------------------------------------------------------------------------------------|

| (5)   | 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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (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 under Financial Accounting Standards Board (“FASB”)      Interpretation No. 48, “Accounting for Uncertainty in      Income Taxes, an interpretation of FASB Statement No. 109” (“FIN      48”) tax liabilities, including interest.  Generally, it is not      practicable to forecast or estimate the payment dates for our FIN 48      liabilities.  Therefore, we included the estimated liabilities      under the “Other” column above.  In addition, we do not expect      that the payment of any of the above-mentioned FIN 48 liabilities will      have a material impact on ourliquidity. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of June 27, 2008, we had $223.2 million in standby letters of credit under      our 2007 Credit Facility.  Letters of credit are used primarily      to support contract performance obligations, insurance programs, bonding      arrangements and real estate leases.  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 ability to issue or renew standby letters of credit      would impair our ability to maintain normal  operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      have 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.  As of June 27, 2008, the amount of the guarantee was      $15.0 million and      will expire on September 30, 2008.  The credit facility will be      renewd and the guarantee will be extended until the contract is completed,      which is expected to be May 31,2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 June 27,    2008. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 no indemnified      claims under this guarantee. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of June 27, 2008, the amount of a guarantee used to collateralize the      credit facility of our United Kingdom operating subsidiary and bank      guarantee lines of our European subsidiaries was $10.0      million. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 to clients on behalf of certain      unconsolidated subsidiaries, joint ventures, and other jointly executed      contracts.  These agreements are entered into primarily to      support the project execution commitments of these      entities.  The maximum potential payment amount of an      outstanding performance guarantee is the remaining cost of work to be      performed by or on behalf of third parties under engineering and      construction contracts.  Amounts that may be required to be paid      in excess of estimated costs to complete contracts in progress are not      estimable.  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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      the ordinary course of business, we cause surety bonds to be issued      generally 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)                                    |   | Six      Months EndedJune      27, 2008 |   |   | Year      EndedDecember      28, 2007 |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|---------------------------------------|--------|
| Effective      average interest rates paid on the revolving line ofcredit |   |                                    | 5.9    | %      |                                  |   | 8.2 | % |
| Average      daily revolving line of credit balances                      |   | $                                       | 0.3    |   |                                  | $      | 2.3 |   |
| Maximum      amounts outstanding at any one point in time                 |   | $                                       | 7.6    |   |                                  | $      | 40.3 |   |

----

----

----

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK

$2.6million.  Conversely, if market rates average 1% lower in the nexttwelve months, our net-of-tax interest expense would decrease by approximately$2.6 million.

----

ITEM 4.  CONTROLS AND PROCEDURES

----

ITEM 1.  LEGAL PROCEEDINGS

ITEM 1A.  RISK FACTORS 

----

----

| ·   | 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 ofdebt. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 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. |
|--------------------|-------------------------------------------------------------------------------|

----

| ·   | coordinating      bid and marketing functions; |
|--------------------|------------------------------------------------|

| ·   | 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. |
|--------------------|---------------------------------------------------------|

----

----

| ·   | the      application of the “percentage-of-completion” method of accounting and      revenue recognition on contracts, change orders and contract      claims; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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. |
|--------------------|--------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| ·   | 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; |
|--------------------|-----------------------------------|

| ·   | exposure      to civil or criminal liability under the Foreign Corrupt Practices Act,      Export Control, Anti-Boycott and other international trade regulations;      and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | general      economic and political conditions in foreign  markets. |
|--------------------|---------------------------------------------------------------------|

----

----

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 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|---------------------------------------|--------|---------|----------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| March      29, 2008 –April 25, 2008                                                                                                                                                                         |   |                                          | — |   |                                  | $      | — |                                                                                               |   |   | —                                                                                      |   |   |   | — |   |
| April      26, 2008 –May 23, 2008                                                                                                                                                                           |   |                                          | — |   |                                  |   | 44.97   |                                                                                               |   |   | —                                                                                      |   |   |   | — |   |
| May      24, 2008 –June 27, 2008                                                                                                                                                                            |   |                                          | 74      |   |                                  |   | 44.08   |                                                                                               |   |   | —                                                                                      |   |   |   | 3,111 |   |
| Total                                   |   |                                          | 74      |   |                                  |   |    |                                                                                               |   |   | —                                                                                      |   |   |   | 3,111 |   |

| (1)   | All      purchases were made pursuant to our 1991 Stock Incentive Plan, our 1999      Equity Incentive Plan and our 2008 Equity Incentive Plan (“Stock      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 ESPP 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 were subject      to covenants that limited our ability to repurchase our common      stock.  However, on June 19, 2008, we amended our 2007 Credit      Facility so that if we maintain designated financial criteria, we are      allowed to repurchase up to 1,000,000 shares of common stock in any fiscal      year.  We did not make any repurchases through this publicly      announced repurchase program during the second quarter ended June 27,      2008. |
|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

| 1.   | The      stockholders voted to approve the election of the following directors to      hold offices until the next annual meeting of stockholder and until their      successors are elected and qualified, or until their earlier deaths or      resignations. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Number      of Shares |       |
|---------------------------------------------|--------|-----------------------|------------|
|                                        |   | For                   |       |   | Against |   |   | Abstain |   |
| H.      Jesse Arnelle                       |   |                  | 68,290,082 |   |   |   | 2,948,065 |   |   |   | 28,265 |   |
| Armen      Der Marderosian                  |   |                  | 69,247,985 |   |   |   | 1,990,388 |   |   |   | 28,039 |   |
| Mickey      P. Foret                        |   |                  | 70,871,616 |   |   |   | 367,647 |   |   |   | 27,149 |   |
| Martin      M. Koffel                       |   |                  | 60,340,082 |   |   |   | 1,897,205 |   |   |   | 29,125 |   |
| General      Joseph W. Ralston, USAF (Ret.) |   |                  | 68,338,003 |   |   |   | 2,899,703 |   |   |   | 28,706 |   |
| John      D. Roach                          |   |                  | 68,281,530 |   |   |   | 2,956,713 |   |   |   | 28,169 |   |
| Douglas      W. Stotlar                     |   |                  | 68,337,232 |   |   |   | 2,897,949 |   |   |   | 21,231 |   |
| William      P. Sullivan                    |   |                  | 70,889,330 |   |   |   | 348,551 |   |   |   | 28,531 |   |
| William      D. Walsh                       |   |                  | 66,683,973 |   |   |   | 4,552,083 |   |   |   | 30,356 |   |
| Lydia      H. Kennard                       |   |                  | 70,817,630 |   |   |   | 419,780 |   |   |   | 29,002 |   |

| 2.   | The      stockholders voted to approve an amendment to the Certificate of      Incorporation to increase the number of authorized shares of common stock      from 100,000,000 shares to 200,000,000shares. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                          |   | Number      of Shares |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
| For                                                               |   |                  | 64,522,964 |   |
| Against                                                           |   |                  | 6,693,936  |   |
| Abstain                                                           |   |                  | 49,512     |   |
| Broker      Non-Votes                                             |   |                  | —    |   |

----

| 3.   | The      stockholders voted to approve the 2008 Equity Incentive Plan, which      authorizes the issuance of up to 5,000,000 shares of common stock under      the plan. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                          |   | Number      of Shares |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
| For                                                               |   |                  | 56,754,646 |   |
| Against                                                           |   |                  | 8,313,698  |   |
| Abstain                                                           |   |                  | 45,201     |   |
| Broker      Non-Votes                                             |   |                  | 6,152,867  |   |

| 4.   | The      stockholders voted to approve the 2008 Employee Stock Purchase Plan, which      authorizes the issuance of up to 8,000,000 shares of common stock under      this plan. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                          |   | Number      of Shares |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
| For                                                               |   |                  | 52,432,502 |   |
| Against                                                           |   |                  | 12,647,839 |   |
| Abstain                                                           |   |                  | 33,204     |   |
| Broker      Non-Votes                                             |   |                  | 6,152,867  |   |

| 5.   | The      stockholders voted to ratify the selection of PricewaterhouseCoopers LLP      as our independent registered public accounting firm for our 2008 fiscal      year. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                          |   | Number      of Shares |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
| For                                                               |   |                  | 69,550,314 |   |
| Against                                                           |   |                  | 1,670,616  |   |
| Abstain                                                           |   |                  | 45,482     |   |
| Broker      Non-Votes                                             |   |                  | —    |   |

ITEM 5.  OTHER INFORMATION

----

ITEM 6. EXHIBITS

|                |                                                                                                                                                                                                                                                                                                                                                                     | Incorporated      by Reference |            |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------|
| Exhibit      Number | Exhibit      Description                                                                                                                                                                                                                                                                                                                                                 | Form                           | Exhibit         | Filing      Date | Filed      Herewith |
| 3.1                 | Certificate      of Incorporation of URS Corporation.                                                                                                                                                                                                                                                                                                                    | 10-K                           | 3.1             | Year      Ended10/31/1991 |   |
| 3.2                 | Certificate      of Amendment of Certificate of Incorporation of URS Corporation as amended      October 18, 1999.                                                                                                                                                                                                                                                  | 10-K                           | 3.3             | 1/22/2004 |   |
| 3.3                 | Certificate      of Elimination as filed with the Secretary of the State of Delaware on      July 23, 2003.                                                                                                                                                                                                                                                         | 10-Q                           | 3.1             | 9/15/2003 |   |
| 3.4                 | Certificate      of Amendment of Certificate of Incorporation of URS Corporation as amended      May 22, 2008.                                                                                                                                                                                                                                                      | DEF      14A                   | Appendix      A | 4/22/2008 |   |
| 3.5                 | By-laws      of URS Corporation as amended through January 30, 2008.                                                                                                                                                                                                                                                                                                | 8-K                            | 3.05            | 2/4/2008 |   |
| 4.1                 | First      Amendment to the Credit Agreement dated as of June 19, 2008, entered into      by and among URS, a syndicate of lenders party thereto, Morgan Stanley      Senior Funding, Inc., as a joint-lead arranger and syndication agent for      lenders, and Wells Fargo Bank, N.A. as a joint-lead arranger and as      administrative agent for the lenders.  | 8-K                            | 4.1             | 6/24/2008 |   |
| 10.1                | 2008      URS Corporation Equity Incentive Plan as adopted May 22,2008.                                                                                                                                                                                                                                                                                             | 8-K                            | 10.1            | 5/23/2008 | * |
| 10.2                | 2008      URS Corporation Form of Grant Notice for Restricted Stock Unit      Award.                                                                                                                                                                                                                                                                                | 8-K                            | 10.2            | 5/23/2008 | * |
| 10.3                | 2008      URS Corporation Form of Grant Notice for Restricted Stock      Award.                                                                                                                                                                                                                                                                                     | 8-K                            | 10.3            | 5/23/2008 | * |
| 10.4                | 2008      URS Corporation Employee Stock Purchase Plan as adopted May 22,      2008.                                                                                                                                                                                                                                                                                | DEF      14A                   | Appendix      C | 4/22/08 | * |
| 10.5                | First      Amendment to Employment Agreement between URS Corporation and H. Thomas      Hicks, dated as of August 1, 2008.                                                                                                                                                                                                                                          |                           |            |   | X* |
| 10.6                | Fifth      Amendment to Employment Agreement between URS Corporation and Joseph      Masters, dated as of August 1, 2008.                                                                                                                                                                                                                                           |                           |            |   | X* |
| 10.7                | First      Amendment to Employment Agreement between URS Corporation and Gary V.      Jandegian, dated as of August 1, 2008.                                                                                                                                                                                                                                        |                           |            |   | X* |
| 10.8                | First      Amendment to Employment Agreement between URS Corporation and Randall A.      Wotring, dated as of August 1, 2008.                                                                                                                                                                                                                                       |                           |            |   | X* |
| 10.9                | First      Amendment to Employment Agreement between URS Corporation and Reed N.      Brimhall, dated as of August 1, 2008.                                                                                                                                                                                                                                         |                           |            |   | X* |
| 10.10               | First      Amendment to Employment Agreement between URS Corporation and Thomas W.      Bishop, dated as of August 1, 2008.                                                                                                                                                                                                                                         |                           |            |   | X* |
| 10.11               | First      Amendment to Employment Agreement between URS Corporation and Susan B.      Kilgannon, dated as of August 1, 2008.                                                                                                                                                                                                                                       |                           |            |   | X* |
| 31.1                | Certification      of the Company’s Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                   |                           |            |   | X |
| 31.2                | Certification      of the Company’s Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                   |                           |            |   | X |
| 32                  | Certification      of the Company’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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       | URS      CORPORATION |                                                              |
|----------------------------|----------------------|-------------------------------------------------------------------|
|                       |                 |                                                              |   |
| Dated:      August 6, 2008 | By:                  | /s/ Reed      N. Brimhall                                    |   |
|                       |                 | Reed      N. Brimhall                                             |   |
|                       |                 | Vice      President, Controller and      Chief Accounting Officer |   |
|                       |                 |                                                              |   |

----

|   | 10.5 | First      Amendment to Employment Agreement between URS Corporation and H. Thomas      Hicks, dated as of August 1, 2008. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Fifth      Amendment to Employment Agreement between URS Corporation and Joseph      Masters, dated as of August 1,2008. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | First      Amendment to Employment Agreement between URS Corporation and Gary V.      Jandegian, dated as of August 1,2008. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | First      Amendment to Employment Agreement between URS Corporation and Randall A.      Wotring, dated as of August 1,2008. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | First      Amendment to Employment Agreement between URS Corporation and Reed N.      Brimhall, dated as of August 1,2008. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | First      Amendment to Employment Agreement between URS Corporation and Thomas W.      Bishop, dated as of August 1, 2008. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 10.11 | First      Amendment to Employment Agreement between URS Corporation and Susan B.      Kilgannon, dated as of August 1,2008. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification      of the Company’s Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of the Company’s Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 32 | Certification      of the Company’s Chief Executive Officer and Chief Financial Officer      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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