----

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| (Mark one)                                  |
|---------------------------------------------|
|   x                                    | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                        |
| For the quarterly period ended July 3, 2009 |
|                                        |   |
| OR                                          |
|                                        |
|   o                                    | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

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

|   | 16BClass                     |   | Outstanding at August 3, 2009 |   |
|--------|------------------------------|--------|-------------------------------|--------|
|   |                         |   |                          |   |
|   | Common Stock, $.01 par value |   | 84,312,567                    |   |

----

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URS CORPORATION AND SUBSIDIARIES

Management’s Discussion and Analysis of Financial Condition and Results of Operations beginning on page 43
Risk Factors beginning on page 76

| PART I.  | FINANCIAL INFORMATION:                                                                      |      |   |
|----------|---------------------------------------------------------------------------------------------|-----------|--------|
|     |                                                                                        |      |   |
| Item 1.  | Financial Statements                                                                        |      |   |
|     | Condensed Consolidated Balance Sheets                                                       |      |   |
|     | July 3, 2009 and January 2, 2009                                                            | 2         |   |
|     | Condensed Consolidated Statements of Operations and Comprehensive Income                    |      |   |
|     | Three and six months ended July 3, 2009 and June 27, 2008                                   | 33        |   |
|     | Condensed Consolidated Statements of Changes in Stockholders’ Equity                  |      |   |
|     | Six months ended July 3, 2009 and June 27, 2008                                             | 4         |   |
|     | Condensed Consolidated Statements of Cash Flows                                             |      |   |
|     | Six months ended July 3, 2009 and June 27, 2008                                             | 55        |   |
|     | Notes to Condensed Consolidated Financial Statements                                        | 77        |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   43 |   |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                  | 755       |   |
| Item 4.  | Controls and Procedures                                                                     | 755       |   |
|     |                                                                                        |      |   |
| PART II. | OTHER INFORMATION:                                                                          |      |   |
|     |                                                                                        |      |   |
| Item 1.  | Legal Proceedings                                                                           | 766       |   |
| Item 1A. | Risk Factors                                                                                | 765       |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 922       |   |
| Item 3.  | Defaults Upon Senior Securities                                                             | 922       |   |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                         | 922       |   |
| Item 5.  | Other Information                                                                           | 922       |   |
| Item 6.  | Exhibits                                                                                    | 933       |   |

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Table of Contents

ITEM 1.  FINANCIAL STATEMENTS 

3BCONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                                                                           |   | July 3, 2009 |      |   | January 2, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|-----------------|--------|
| ASSETS                                                                                                                                                         |   |         |      |   |            |   |
| Current assets:                                                                                                                                                |   |         |      |   |            |   |
| Cash and cash equivalents                                                                                                                                      |   | $            | 447,970   |   |            | $      | 223,998 |   |
| Short-term investments                                                                                                                                         |   |         | 165,530   |   |            |   | — |   |
| Accounts receivable, including retentions of $46,740 and $51,141, respectively                                                                                 |   |         | 1,009,111 |   |            |   | 1,062,177 |   |
| Costs and accrued earnings in excess of billings on contracts                                                                                                  |   |         | 1,001,721 |   |            |   | 1,079,047 |   |
| Less receivable allowances                                                                                                                                     |   |         | (39,302   | )      |            |   | (39,429 | ) |
| Net accounts receivable                                                                                                                                        |   |         | 1,971,530 |   |            |   | 2,101,795 |   |
| Deferred tax assets                                                                                                                                            |   |         | 114,837   |   |            |   | 161,061 |   |
| Prepaid expenses and other assets                                                                                                                              |   |         | 211,722   |   |            |   | 153,627 |   |
| Total current assets                                                                                                                                           |   |         | 2,911,589 |   |            |   | 2,640,481 |   |
| Investments in and advances to unconsolidated joint ventures                                                                                                   |   |         | 84,798    |   |            |   | 269,616 |   |
| Property and equipment at cost, net                                                                                                                            |   |         | 322,102   |   |            |   | 347,076 |   |
| Intangible assets, net                                                                                                                                         |   |         | 485,095   |   |            |   | 511,508 |   |
| Goodwill                                                                                                                                                       |   |         | 3,158,463 |   |            |   | 3,158,205 |   |
| Other assets                                                                                                                                                   |   |         | 81,987    |   |            |   | 74,266 |   |
| Total assets                                                                                                                                                   |   | $            | 7,044,034 |   |            | $      | 7,001,152 |   |
| LIABILITIES AND EQUITY                                                                                                                                         |   |         |      |   |            |   |   |   |
| Current liabilities:                                                                                                                                           |   |         |      |   |            |   |   |   |
| Book overdrafts                                                                                                                                                |   | $            | 1,412     |   |            | $      | 438 |   |
| Current portion of long-term debt                                                                                                                              |   |         | 116,941   |   |            |   | 16,506 |   |
| Accounts payable and subcontractors payable, including retentions of $78,306 and $85,097, respectively                                                         |   |         | 606,658   |   |            |   | 712,552 |   |
| Accrued salaries and wages                                                                                                                                     |   |         | 394,466   |   |            |   | 430,938 |   |
| Billings in excess of costs and accrued earnings on contracts                                                                                                  |   |         | 241,616   |   |            |   | 254,186 |   |
| Accrued expenses and other                                                                                                                                     |   |         | 245,115   |   |            |   | 172,735 |   |
| Total current liabilities                                                                                                                                      |   |         | 1,606,208 |   |            |   | 1,587,355 |   |
| Long-term debt                                                                                                                                                 |   |         | 881,609   |   |            |   | 1,091,528 |   |
| Deferred tax liabilities                                                                                                                                       |   |         | 327,700   |   |            |   | 270,165 |   |
| Self-insurance reserves                                                                                                                                        |   |         | 108,484   |   |            |   | 101,930 |   |
| Pension, post-retirement, and other benefit obligations                                                                                                        |   |         | 195,276   |   |            |   | 202,520 |   |
| Other long-term liabilities                                                                                                                                    |   |         | 91,452    |   |            |   | 91,898 |   |
| Total liabilities                                                                                                                                              |   |         | 3,210,729 |   |            |   | 3,345,396 |   |
| Commitments and contingencies (Note 8)                                                                                                                         |   |         |      |   |            |   |   |   |
| URS Stockholders’ equity:                                                                                                                                |   |         |      |   |            |   |   |   |
| Preferred stock, authorized 3,000 shares; no shares outstanding                                                                                                |   |         | —   |   |            |   | — |   |
| Common stock, par value $.01; authorized 200,000 shares; 85,993 and 85,004 shares issued, respectively; and 84,303 and 83,952 shares outstanding, respectively |   |         | 859       |   |            |   | 850 |   |
| Treasury stock, 1,690 and 1,052 shares at cost, respectively                                                                                                   |   |         | (66,557   | )      |            |   | (42,585 | ) |
| Additional paid-in capital                                                                                                                                     |   |         | 2,860,118 |   |            |   | 2,838,290 |   |
| Accumulated other comprehensive loss                                                                                                                           |   |         | (38,088   | )      |            |   | (55,866 | ) |
| Retained earnings                                                                                                                                              |   |         | 1,054,550 |   |            |   | 883,942 |   |
| Total URS stockholders’ equity                                                                                                                           |   |         | 3,810,882 |   |            |   | 3,624,631 |   |
| Noncontrolling interests                                                                                                                                       |   |         | 22,423    |   |            |   | 31,125 |   |
| Total stockholders’ equity                                                                                                                               |   |         | 3,833,305 |   |            |   | 3,655,756 |   |
| Total liabilities and stockholders’ equity                                                                                                          |   | $            | 7,044,034 |   |            | $      | 7,001,152 |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - UNAUDITED 

|                                                                                                          |   | Three Months Ended |       |   | Six Months Ended |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                                                                          |   | July 3,2009        |       |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Revenues                                                                                                      |   | $                  | 2,297,608  |   |             | $      | 2,530,944 |   |   | $ | 4,818,246 |   |   | $ | 4,789,971 |   |
| Cost of revenues                                                                                              |   |               | (2,169,268 | )      |             |   | (2,403,013 | ) |   |   | (4,548,691 | ) |   |   | (4,559,757 | ) |
| General and administrative expenses                                                                           |   |               | (20,607    | )      |             |   | (20,458 | ) |   |   | (38,692 | ) |   |   | (36,636 | ) |
| Equity in income of unconsolidated joint ventures                                                             |   |               | 18,332     |   |             |   | 26,986 |   |   |   | 58,345 |   |   |   | 56,732 |   |
| Operating income                                                                                              |   |               | 126,065    |   |             |   | 134,459 |   |   |   | 289,208 |   |   |   | 250,310 |   |
| Interest expense                                                                                              |   |               | (11,926    | )      |             |   | (23,126 | ) |   |   | (26,649 | ) |   |   | (48,745 | ) |
| Other income, net (Note 2)                                                                                    |   |               | 55,498     |   |             |   | — |   |   |   | 47,914 |   |   |   | — |   |
| Income before income taxes                                                                                    |   |               | 169,637    |   |             |   | 111,333 |   |   |   | 310,473 |   |   |   | 201,565 |   |
| Income tax expense                                                                                            |   |               | (69,490    | )      |             |   | (47,534 | ) |   |   | (127,125 | ) |   |   | (84,985 | ) |
| Net income                                                                                                    |   |               | 100,147    |   |             |   | 63,799 |   |   |   | 183,348 |   |   |   | 116,580 |   |
| Noncontrolling interests in income of consolidated subsidiaries, net of tax                                   |   |               | (5,011     | )      |             |   | (4,374 | ) |   |   | (12,740 | ) |   |   | (7,785 | ) |
| Net income attributable to URS                                                                                |   | $                  | 95,136     |   |             | $      | 59,425 |   |   | $ | 170,608 |   |   | $ | 108,795 |   |
|                                                                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss):                                                                                  |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                    |   | $                  | 100,147    |   |             | $      | 63,799 |   |   | $ | 183,348 |   |   | $ | 116,580 |   |
| Pension and post-retirement related adjustments, net of tax                                                   |   |               | 43         |   |             |   | — |   |   |   | 86 |   |   |   | — |   |
| Foreign currency translation adjustments, net of tax                                                          |   |               | 14,999     |   |             |   | 5 |   |   |   | 10,322 |   |   |   | 5,418 |   |
| Foreign currency translation adjustment due to sale of investment in unconsolidated joint venture, net of tax |   |               | 5,115      |   |             |   | — |   |   |   | 5,115 |   |   |   | — |   |
| Reclassification of unrealized loss on foreign currency forward contract, net of tax                          |   |               | 7,617      |   |             |   | — |   |   |   | — |   |   |   | — |   |
| Unrealized gain (loss) on interest rate swaps, net of tax                                                     |   |               | 1,028      |   |             |   | 7,713 |   |   |   | 2,255 |   |   |   | (2,799 | ) |
| Comprehensive income                                                                                          |   |               | 128,949    |   |             |   | 71,517 |   |   |   | 201,126 |   |   |   | 119,199 |   |
| Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax                     |   |               | (5,011     | )      |             |   | (4,374 | ) |   |   | (12,740 | ) |   |   | (7,785 | ) |
| Comprehensive income attributable to URS                                                                      |   | $                  | 123,938    |   |             | $      | 67,143 |   |   | $ | 188,386 |   |   | $ | 111,414 |   |
|                                                                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share (Note 1):                                                                                  |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                         |   | $                  | 1.17       |   |             | $      | .70 |   |   | $ | 2.10 |   |   | $ | 1.30 |   |
| Diluted                                                                                                       |   | $                  | 1.16       |   |             | $      | .70 |   |   | $ | 2.08 |   |   | $ | 1.29 |   |
| Weighted-average shares outstanding (Note 1):                                                                 |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                         |   |               | 81,347     |   |             |   | 81,989 |   |   |   | 81,420 |   |   |   | 81,897 |   |
| Diluted                                                                                                       |   |               | 82,025     |   |             |   | 82,605 |   |   |   | 82,021 |   |   |   | 82,527 |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF

|                                                                                                          |   |         |    |   |     |   |    | Additional |   |   | AccumulatedOther |   |   |          |      |   | Total URS           |   |    |           |   |   |      |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------|--------|---------|------------|--------|--------|------------------|--------|--------|---------------|-----------|--------|---------------------|--------|---------|----------------|--------|--------|-----------|--------|
|                                                                                                          |   | Common Stock |    |   | Treasury |   |    | Paid-in    |   |   | Comprehensive    |   |   | Retained      |      |   | Stockholders’ |   |    | Noncontrolling |   |   | Total     |   |
|                                                                                                          |   | Shares       |    |   | Amount   |   |    | Stock      |   |   | Capital          |   |   | Income (Loss) |      |   | Earnings            |   |    | Equity         |   |   | Interests |   |   | Equity |   |
| Balances, December 28, 2007                                                                                   |   |         | 83,303  |   |     | $      | 833     |       |   | $      | (287             | )      |   | $             | 2,797,238 |   |                | $      | 16,635  |           |   | $      | 664,151   |   |   | $ | 3,478,570 |   |   | $ | 25,086 |   |   | $ | 3,503,656 |   |
| Employee stock purchases and exercises of stock options                                                       |   |         | (4      | )      |     |   | — |       |   |   | —          |   |   |          | 32        |   |                |   | — |           |   |   | —   |   |   |   | 32 |   |   |   | — |   |   |   | 32 |   |
| Stock-based compensation                                                                                      |   |         | 971     |   |     |   | 10      |       |   |   | —          |   |   |          | 14,281    |   |                |   | — |           |   |   | —   |   |   |   | 14,291 |   |   |   | — |   |   |   | 14,291 |   |
| Tax benefit of stock-based compensation                                                                       |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | 548       |   |                |   | — |           |   |   | —   |   |   |   | 548 |   |   |   | — |   |   |   | 548 |   |
| Foreign currency translation adjustments, net of tax                                                          |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 5,418   |           |   |   | —   |   |   |   | 5,418 |   |   |   | — |   |   |   | 5,418 |   |
| Interest rate swaps, net of tax                                                                               |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | (2,799  | )              |   |   | —   |   |   |   | (2,799 | ) |   |   | — |   |   |   | (2,799 | ) |
| Distributions to noncontrolling interests                                                                     |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | —   |   |   |   | — |   |   |   | (6,189 | ) |   |   | (6,189 | ) |
| Other transactions with noncontrolling interests                                                              |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | —   |   |   |   | — |   |   |   | 432 |   |   |   | 432 |   |
| Net income                                                                                                    |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | 108,795   |   |   |   | 108,795 |   |   |   | 7,785 |   |   |   | 116,580 |   |
| Balances, June 27, 2008                                                                                       |   |         | 84,270  |   |     | $      | 843     |       |   | $      | (287             | )      |   | $             | 2,812,099 |   |                | $      | 19,254  |           |   | $      | 772,946   |   |   | $ | 3,604,855 |   |   | $ | 27,114 |   |   | $ | 3,631,969 |   |
|                                                                                                          |   |         |    |   |     |   |    |       |   |   |             |   |   |          |      |   |                |   |    |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, January 2, 2009                                                                                     |   |         | 83,952  |   |     | $      | 850     |       |   | $      | (42,585          | )      |   | $             | 2,838,290 |   |                | $      | (55,866 | )              |   | $      | 883,942   |   |   | $ | 3,624,631 |   |   | $ | 31,125 |   |   | $ | 3,655,756 |   |
| Employee stock purchases and exercises of stock options                                                       |   |         | 103     |   |     |   | 1       |       |   |   | —          |   |   |          | 1,280     |   |                |   | — |           |   |   | —   |   |   |   | 1,281 |   |   |   | — |   |   |   | 1,281 |   |
| Stock-based compensation                                                                                      |   |         | 886     |   |     |   | 8       |       |   |   | —          |   |   |          | 18,781    |   |                |   | — |           |   |   | —   |   |   |   | 18,789 |   |   |   | — |   |   |   | 18,789 |   |
| Tax benefit of stock-based compensation                                                                       |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | 1,767     |   |                |   | — |           |   |   | —   |   |   |   | 1,767 |   |   |   | — |   |   |   | 1,767 |   |
| Foreign currency translation adjustments, net of tax                                                          |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 10,322  |           |   |   | —   |   |   |   | 10,322 |   |   |   | — |   |   |   | 10,322 |   |
| Foreign currency translation adjustment due to sale of investment in unconsolidated joint venture, net of tax |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 5,115   |           |   |   | —   |   |   |   | 5,115 |   |   |   | — |   |   |   | 5,115 |   |
| Pension and post-retirement related adjustments, net of tax                                                   |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 86      |           |   |   | —   |   |   |   | 86 |   |   |   | — |   |   |   | 86 |   |
| Interest rate swaps, net of tax                                                                               |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 2,255   |           |   |   | —   |   |   |   | 2,255 |   |   |   | — |   |   |   | 2,255 |   |
| Purchase of treasury stock                                                                                    |   |         | (638    | )      |     |   | — |       |   |   | (23,972          | )      |   |          | —   |   |                |   | — |           |   |   | —   |   |   |   | (23,972 | ) |   |   | — |   |   |   | (23,972 | ) |
| Unrealized loss on foreign currency forward contract, net of tax                                              |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | (10,728 | )              |   |   | —   |   |   |   | (10,728 | ) |   |   | — |   |   |   | (10,728 | ) |
| Reclassification of unrealized loss on foreign currency forward contract, net of tax                          |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | 10,728  |           |   |   | —   |   |   |   | 10,728 |   |   |   | — |   |   |   | 10,728 |   |
| Distributions to noncontrolling interests                                                                     |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | —   |   |   |   | — |   |   |   | (22,241 | ) |   |   | (22,241 | ) |
| Other transactions with noncontrolling interests                                                              |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | —   |   |   |   | — |   |   |   | 799 |   |   |   | 799 |   |
| Net income                                                                                                    |   |         | — |   |     |   | — |       |   |   | —          |   |   |          | —   |   |                |   | — |           |   |   | 170,608   |   |   |   | 170,608 |   |   |   | 12,740 |   |   |   | 183,348 |   |
| Balances, July 3, 2009                                                                                        |   |         | 84,303  |   |     | $      | 859     |       |   | $      | (66,557          | )      |   | $             | 2,860,118 |   |                | $      | (38,088 | )              |   | $      | 1,054,550 |   |   | $ | 3,810,882 |   |   | $ | 22,423 |   |   | $ | 3,833,305 |   |

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Table of Contents

5BCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                                           |   | Six Months Ended |     |
|------------------------------------------------------------------------------------------------|--------|------------------|----------|
|                                                                                           |   | July 3,2009      |     |   | June 27,2008 |   |
| Cash flows from operating activities:                                                          |   |             |     |   |   |   |
| Net income                                                                                     |   | $                | 183,348  |   |   | $ | 116,580 |   |
| Adjustments to reconcile net income to net cash from operating activities:                     |   |             |     |   |   |   |   |   |
| Depreciation                                                                                   |   |             | 45,645   |   |   |   | 43,843 |   |
| Amortization of intangible assets                                                              |   |             | 26,413   |   |   |   | 26,848 |   |
| Amortization of debt issuance costs                                                            |   |             | 3,994    |   |   |   | 4,139 |   |
| Loss on settlement of foreign currency forward contract                                        |   |             | 27,675   |   |   |   | — |   |
| Net gain on sale of investment in unconsolidated joint venture                                 |   |             | (75,589  | ) |   |   | — |   |
| Normal profit                                                                                  |   |             | (2,589   | ) |   |   | (8,760 | ) |
| Provision for doubtful accounts                                                                |   |             | 2,959    |   |   |   | 1,473 |   |
| Deferred income taxes                                                                          |   |             | 89,938   |   |   |   | 40,100 |   |
| Stock-based compensation                                                                       |   |             | 18,789   |   |   |   | 14,291 |   |
| Excess tax benefits from stock-based compensation                                              |   |             | (1,767   | ) |   |   | (548 | ) |
| Equity in income of unconsolidated joint ventures, less dividends received                     |   |             | (11,303  | ) |   |   | (9,915 | ) |
| Changes in operating assets, liabilities and other, net of effects of acquisition:             |   |             |     |   |   |   |   |   |
| Accounts receivable and costs and accrued earnings in excess of billings on contracts          |   |             | 137,268  |   |   |   | (75,660 | ) |
| Prepaid expenses and other assets                                                              |   |             | 8,975    |   |   |   | 8,574 |   |
| Investments in and advances to unconsolidated joint ventures                                   |   |             | 8,348    |   |   |   | (3,695 | ) |
| Accounts payable, accrued salaries and wages and accrued expenses                              |   |             | (134,692 | ) |   |   | 25,877 |   |
| Billings in excess of costs and accrued earnings on contracts                                  |   |             | (12,306  | ) |   |   | 9,814 |   |
| Other long-term liabilities                                                                    |   |             | 665      |   |   |   | 17,212 |   |
| Other assets, net                                                                              |   |             | 5,433    |   |   |   | 65 |   |
| Total adjustments and changes                                                                  |   |             | 137,856  |   |   |   | 93,658 |   |
| Net cash from operating activities                                                             |   |             | 321,204  |   |   |   | 210,238 |   |
| Cash flows from investing activities:                                                          |   |             |     |   |   |   |   |   |
| Payments for business acquisition                                                              |   |             | —  |   |   |   | (2,316 | ) |
| Proceeds from disposal of property and equipment, and sale-leaseback transactions              |   |             | 3,708    |   |   |   | 8,435 |   |
| Proceeds from sale of investment in unconsolidated joint venture, net of related selling costs |   |             | 282,584  |   |   |   | — |   |
| Payment in settlement of foreign currency forward contract                                     |   |             | (273,773 | ) |   |   | — |   |
| Receipt in settlement of foreign currency forward contract                                     |   |             | 246,098  |   |   |   | — |   |
| Investments in and advances to unconsolidated joint ventures                                   |   |             | (10,294  | ) |   |   | (23,116 | ) |
| Changes in restricted cash                                                                     |   |             | (954     | ) |   |   | 1,937 |   |
| Capital expenditures, less equipment purchased through capital leases and equipment notes      |   |             | (21,253  | ) |   |   | (45,628 | ) |
| Purchase of short-term investments                                                             |   |             | (165,530 | ) |   |   | — |   |
| Net cash from investing activities                                                             |   |             | 60,586   |   |   |   | (60,688 | ) |

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|                                                                             |   | Six Months Ended |     |
|----------------------------------------------------------------------------------|--------|------------------|----------|
|                                                                             |   | July 3,2009      |     |   | June 27,2008 |   |
| Cash flows from financing activities:                                            |   |             |     |   |   |   |
| Long-term debt principal payments                                                |   |             | (112,406 | ) |   |   | (104,344 | ) |
| Net payments under lines of credit and short-term notes                          |   |             | (220     | ) |   |   | (220 | ) |
| Net change in book overdrafts                                                    |   |             | 974      |   |   |   | (14,534 | ) |
| Capital lease obligation payments                                                |   |             | (3,196   | ) |   |   | (3,996 | ) |
| Excess tax benefits from stock-based compensation                                |   |             | 1,767    |   |   |   | 548 |   |
| Proceeds from employee stock purchases and exercises of stock options            |   |             | 9,242    |   |   |   | 5,858 |   |
| Distributions to noncontrolling interests                                        |   |             | (30,007  | ) |   |   | (11,441 | ) |
| Purchase of treasury stock                                                       |   |             | (23,972  | ) |   |   | — |   |
| Net cash from financing activities                                               |   |             | (157,818 | ) |   |   | (128,129 | ) |
| Net increase in cash and cash equivalents                                        |   |             | 223,972  |   |   |   | 21,421 |   |
| Cash and cash equivalents at beginning of period                                 |   |             | 223,998  |   |   |   | 256,502 |   |
| Cash and cash equivalents at end of period                                       |   | $                | 447,970  |   |   | $ | 277,923 |   |
|                                                                             |   |             |     |   |   |   |   |   |
| Supplemental information:                                                        |   |             |     |   |   |   |   |   |
| Interest paid                                                                    |   | $                | 23,770   |   |   | $ | 45,916 |   |
| Taxes paid                                                                       |   | $                | 45,174   |   |   | $ | 25,824 |   |
| Taxes refunded                                                                   |   | $                | 30,000   |   |   | $ | — |   |
|                                                                             |   |             |     |   |   |   |   |   |
| Supplemental schedule of noncash investing and financing activities:             |   |             |     |   |   |   |   |   |
| Equipment acquired with capital lease obligations and equipment note obligations |   | $                | 3,688    |   |   | $ | 6,671 |   |

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NOTE 1.  BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES

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|                                                                   |   | Three Months Ended |    |   | Six Months Ended |   |
|------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| (In thousands, except per share data)                                  |   | July 3,2009        |    |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Net income attributable to URS                                         |   | $                  | 95,136  |   |             | $      | 59,425 |   |   | $ | 170,608 |   |   | $ | 108,795 |   |
| Less:  Earnings allocated to participating securities        |   |               | — |   |             |   | (1,782 | ) |   |   | — |   |   |   | (2,639 | ) |
| Earnings available to common stockholders – Basic and Diluted    |   | $                  | 95,136  |   |             | $      | 57,643 |   |   | $ | 170,608 |   |   | $ | 106,156 |   |
|                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common stock shares outstanding                       |   |               | 81,347  |   |             |   | 81,989 |   |   |   | 81,420 |   |   |   | 81,897 |   |
| Effect of dilutive stock options and restricted stock awards and units |   |               | 678     |   |             |   | 616 |   |   |   | 601 |   |   |   | 630 |   |
| Weighted-average common stock outstanding – Diluted              |   |               | 82,025  |   |             |   | 82,605 |   |   |   | 82,021 |   |   |   | 82,527 |   |

| (In thousands)                                 |   | July 3,2009 |   |   | June 27,2008 |   |
|------------------------------------------------|--------|-------------|--------|--------|--------------|--------|
| Anti-dilutive equity awards not included above |   |        | 729    |   |         |   | — |   |

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|                                                                |   | As of       |    |
|---------------------------------------------------------------------|--------|-------------|---------|
| (In millions)                                                       |   | July 3,2009 |    |   | January 2,2009 |   |
| Accounts receivable:                                                |   |        |    |   |   |   |
| U.S. federal government                                             |   | $           | 376.4   |   |   | $ | 294.5 |   |
| Others                                                              |   |        | 632.7   |   |   |   | 767.7 |   |
| Total accounts receivable                                           |   | $           | 1,009.1 |   |   | $ | 1,062.2 |   |
| Costs and accrued earnings in excess of billings on contracts:      |   |        |    |   |   |   |   |   |
| U.S. federal government                                             |   | $           | 491.4   |   |   | $ | 471.4 |   |
| Others                                                              |   |        | 510.3   |   |   |   | 607.6 |   |
| Total costs and accrued earnings in excess of billings on contracts |   | $           | 1,001.7 |   |   | $ | 1,079.0 |   |

Interim and Annual Goodwill Impairment Review 

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

| ·   | Within the EG&G Division Operating Segment: |
|--------------------|-------------------------------------------------|

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

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

| ·   | Within the Washington Division Operating Segment: |
|--------------------|---------------------------------------------------|

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

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

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

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

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

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|                                                                 |   | As of       |   |
|----------------------------------------------------------------------|--------|-------------|--------|
| (In millions)                                                        |   | July 3,2009 |   |   | January 2,2009 |   |
| Billings in excess of costs and accrued earnings on contracts        |   | $           | 181.1  |   |   | $ | 182.6 |   |
| Advance payments negotiated as a contract condition                  |   |        | 23.8   |   |   |   | 30.4 |   |
| Estimated losses on uncompleted contracts                            |   |        | 17.7   |   |   |   | 21.0 |   |
| Normal profit liabilities                                            |   |        | 8.9    |   |   |   | 11.1 |   |
| Project-related legal liabilities and other project-related reserves |   |        | 7.1    |   |   |   | 4.0 |   |
| Other                                                                |   |        | 3.0    |   |   |   | 5.1 |   |
| Total                                                                |   | $           | 241.6  |   |   | $ | 254.2 |   |

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In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”).  This statement establishes general standards of accounting for and disclosures of events that occur after the balance sheet datebut before financial statements are issued or are available to be issued.  SFAS 165 requires (i) recognition in the financial statements of the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, (ii) disclosure of the date through which subsequent events have been evaluated, as well as whether that date is the date the financial statementswere issued or the date the financial statements were available to be issued, and (iii) disclosure of the nature of the non-recognized subsequent event and related estimate of the financial effects to keep the financial statements from being misleading, or a statement that such an estimate cannot be made. SFAS 165 applies only to the accounting for and disclosure of subsequent events not addressed in other GAAP.  This statement became effective for us in the second quarter of our 2009 fiscal year andapplies to our interim and fiscal year financial statements prospectively.  Consistent with past practice, we have evaluated subsequent events through the issuance date of our financial statements, which, for the quarter ended July 3, 2009, was August 12, 2009.  The adoption of SFAS 165 did not have a material impact on our condensed consolidated financial statements. 

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2.  INVESTMENTS IN AND ADVANCES TO JOINT VENTURES 

Note 8

| (In thousands)                                                                                                                                                                                                                                                                                                                                                                                              |   | July 3,2009 |    |   | January 2,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|----------------|--------|
| Cash and cash equivalents                                                                       |   | $           | 25,611  |   |           | $      | 23,696 |   |
| Net accounts receivable                                                                         |   |        | 45,501  |   |           |   | 58,838 |   |
| Other current assets                                                                            |   |        | — |   |           |   | 199 |   |
| Non-current assets                                                                              |   |        | — |   |           |   | 3 |   |
| Total assets                                                                                                                                      |   | $           | 71,112  |   |           | $      | 82,736 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |        |    |   |           |   |   |   |
| Accounts and subcontractors payable                                                             |   | $           | 36,219  |   |           | $      | 39,801 |   |
| Billings in excess of costs and accrued earnings                                                                                                                                                                                                                                                                                                                                                            |   |        | 10,109  |   |           |   | 17,515 |   |
| Accrued expenses and other                                                                      |   |        | 209     |   |           |   | — |   |
| Non-current liabilities                                                                         |   |        | — |   |           |   | 349 |   |
| Total liabilities                                                                                                                  |   |        | 46,537  |   |           |   | 57,665 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |        |    |   |           |   |   |   |
| Total owners’ equity                                                                                                         |   |        | 24,575  |   |           |   | 25,071 |   |
| Total liabilities and owners’ equity                                                                                                                                                                                                                                                                                                                                                                  |   | $           | 71,112  |   |           | $      | 82,736 |   |

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| (In thousands)                                                                                                                                                                                                                                                                                                                                                                                              |   | July 3,2009 |    |   | January 2,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|----------------|--------|
| Cash and cash equivalents                                                                       |   | $           | 31,098  |   |           | $      | 46,607 |   |
| Net accounts receivable                                                                         |   |        | 17,250  |   |           |   | 85,285 |   |
| Total assets                                                                                                                                      |   | $           | 48,348  |   |           | $      | 131,892 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |        |    |   |           |   |   |   |
| Accounts and subcontractors payable                                                             |   | $           | 43,627  |   |           | $      | 121,158 |   |
| Accrued expenses and other                                                                      |   |        | — |   |           |   | 1,179 |   |
| Total liabilities                                                                                                                  |   |        | 43,627  |   |           |   | 122,337 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |        |    |   |           |   |   |   |
| Total owners’ equity                                                                                                         |   |        | 4,721   |   |           |   | 9,555 |   |
| Total liabilities and owners’ equity                                                                                                                                                                                                                                                                                                                                                                  |   | $           | 48,348  |   |           | $      | 131,892 |   |

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Note4

| (In millions)                                           |   | Three Months Ended July 3, 2009 |   |   | Six Months Ended July 3, 2009 |   |
|---------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
| Other income, net:                                      |   |                            |   |   |                          |   |
| Sales proceeds                                          |   | $                               | 287.8  |   |                          | $      | 287.8 |   |
| Less:  carrying value                         |   |                            | (207.0 | )      |                          |   | (207.0 | ) |
| sale-related costs                                      |   |                            | (3.8   | )      |                          |   | (5.2 | ) |
| Gain on sale                                            |   |                            | 77.0   |   |                          |   | 75.6 |   |
| Loss on settlement of foreign currency forward contract |   |                            | (21.5  | )      |                          |   | (27.7 | ) |
| Other income, net                                       |   | $                               | 55.5   |   |                          | $      | 47.9 |   |

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| (In thousands)                               |   | MIBRAGMiningVenture (1) |      |   | Other UnconsolidatedJoint Ventures (2) |   |
|----------------------------------------------|--------|-------------------------|-----------|--------|----------------------------------------|--------|
| July 3, 2009                                 |   |                    |      |   |                                   |   |
| Current assets                               |   |                    | N/A       |   |                                   | $      | 584,146 |   |
| Noncurrent assets                            |   |                    | N/A       |   |                                   | $      | 17,877 |   |
| Current liabilities                          |   |                    | N/A       |   |                                   | $      | 439,131 |   |
|                                         |   |                    |      |   |                                   |   |   |   |
| January 2, 2009                              |   |                    |      |   |                                   |   |   |   |
| Current assets                               |   | $                       | 173,270   |   |                                   | $      | 587,502 |   |
| Noncurrent assets                            |   | $                       | 1,048,991 |   |                                   | $      | 15,097 |   |
| Current liabilities                          |   | $                       | 82,100    |   |                                   | $      | 444,845 |   |
| Noncurrent liabilities                       |   | $                       | 782,008   |   |                                   | $      | 4,348 |   |
|                                         |   |                    |      |   |                                   |   |   |   |
| Three months ended July 3, 2009 (1)          |   |                    |      |   |
| Revenues                                     |   | $                       | 85,429    |   |                                   | $      | 439,529 |   |
| Cost of revenues                             |   |                    | (78,285   | )      |                                   |   | (381,358 | ) |
| Income from continuing operations before tax |   | $                       | 7,144     |   |                                   | $      | 58,171 |   |
| Net income                                   |   | $                       | 6,975     |   |                                   | $      | 53,791 |   |
|                                         |   |                    |      |   |                                   |   |   |   |
| Three months ended June 27, 2008             |   |                    |      |   |
| Revenues                                     |   | $                       | 134,144   |   |                                   | $      | 558,032 |   |
| Cost of revenues                             |   |                    | (118,483  | )      |                                   |   | (491,484 | ) |
| Income from continuing operations before tax |   | $                       | 15,661    |   |                                   | $      | 66,548 |   |
| Net income                                   |   | $                       | 14,552    |   |                                   | $      | 66,548 |   |
|                                         |   |                    |      |   |                                   |   |   |   |
| Six months ended July 3, 2009 (1)            |   |                    |      |   |                                   |   |   |   |
| Revenues                                     |   | $                       | 219,606   |   |                                   | $      | 1,001,574 |   |
| Cost of revenues                             |   |                    | (181,770  | )      |                                   |   | (873,581 | ) |
| Income from continuing operations before tax |   | $                       | 37,836    |   |                                   | $      | 127,993 |   |
| Net income                                   |   | $                       | 37,307    |   |                                   | $      | 121,354 |   |
|                                         |   |                    |      |   |                                   |   |   |   |
| Six months ended June 27, 2008               |   |                    |      |   |                                   |   |   |   |
| Revenues                                     |   | $                       | 264,008   |   |                                   | $      | 1,009,586 |   |
| Cost of revenues                             |   |                    | (228,296  | )      |                                   |   | (892,151 | ) |
| Income from continuing operations before tax |   | $                       | 35,712    |   |                                   | $      | 117,435 |   |
| Net income                                   |   | $                       | 33,594    |   |                                   | $      | 117,435 |   |

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

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

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3.  PROPERTY, EQUIPMENT, AND INTANGIBLE ASSETS 

| (In thousands)                            |   | July 3,2009 |     |   | January 2,2009 |   |
|-------------------------------------------|--------|-------------|----------|--------|----------------|--------|
| Equipment and internal-use software       |   | $           | 376,334  |   |           | $      | 365,855 |   |
| Construction and mining equipment         |   |        | 183,615  |   |           |   | 180,268 |   |
| Furniture and fixtures                    |   |        | 55,464   |   |           |   | 54,214 |   |
| Leasehold improvements                    |   |        | 66,808   |   |           |   | 63,267 |   |
| Construction in progress                  |   |        | 2,007    |   |           |   | 3,564 |   |
| Land and improvements                     |   |        | 584      |   |           |   | 584 |   |
|                                      |   |        | 684,812  |   |           |   | 667,752 |   |
| Accumulated depreciation and amortization |   |        | (362,710 | )      |           |   | (320,676 | ) |
| Property and equipment at cost, net       |   | $           | 322,102  |   |           | $      | 347,076 |   |

NOTE 4.  INDEBTEDNESS 

| (In thousands)                                             |   | July 3,2009 |    |   | January 2,2009 |   |
|------------------------------------------------------------|--------|-------------|---------|--------|----------------|--------|
| Bank term loans, net of debt issuance costs                |   | $           | 954,685 |   |           | $      | 1,059,377 |   |
| Obligations under capital leases                           |   |        | 15,505  |   |           |   | 14,785 |   |
| Notes payable, foreign credit lines and other indebtedness |   |        | 28,360  |   |           |   | 33,872 |   |
| Total indebtedness                                         |   |        | 998,550 |   |           |   | 1,108,034 |   |
| Less:                                                      |   |        |    |   |           |   |   |   |
| Current portion of long-term debt                          |   |        | 116,941 |   |           |   | 16,506 |   |
| Long-term debt                                             |   | $           | 881,609 |   |           | $      | 1,091,528 |   |

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| (In millions, except percentages)                                     |   | Six Months EndedJuly 3, 2009 |    |   | Year EndedJanuary 2, 2009 |   |
|-----------------------------------------------------------------------|--------|------------------------------|---------|--------|---------------------------|--------|
| Effective average interest rates paid on the revolving line of credit |   |                         | 1.6     | %      |                      |   | 5.6 | % |
| Average daily revolving line of credit balances                       |   | $                            | — |   |                      | $      | 0.2 |   |
| Maximum amounts outstanding at any one point in time                  |   | $                            | 0.3     |   |                      | $      | 7.7 |   |

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| (In millions)                                           |   | Three Months EndedApril 3, 2009 |    |   | Three Months EndedJuly 3, 2009 |   |   | Six Months EndedJuly 3, 2009 |   |
|---------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|--------|------------------------------|--------|
| Effective hedge portion of the contract                 |   | $                               | — |   |                           | $      | 17.9   |                         |   | $ | 17.9 |   |
| Unhedged portion of the contract                        |   |                            | 6.2     |   |                           |   | 3.6    |                         |   |   | 9.8 |   |
| Loss on settlement of foreign currency forward contract |   | $                               | 6.2     |   |                           | $      | 21.5   |                         |   | $ | 27.7 |   |

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| (In millions)                  | Total Carrying Value as of July 3, 2009 |                                     |   | Fair Value Measurement as of July 3, 2009 |                                         |
|--------------------------------|-----------------------------------------|------------------------------------------|--------|-------------------------------------------|----------------------------------------------|
|                           |                                    | Quoted Prices in Active Markets(Level 1) |   |                                      | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Interest rate swap liabilities | $                                  |       11.9 |   |                                      | $                                            |        — |   |   | $ |        11.9 |   |   | $ |         — |   |
| Short-term investments         |                                    | 165.5                                    |   |                                      |                                         | — |   |   |   | 165.5 |   |   |   | — |   |

5.  EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS 

|                           |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (In thousands)                 |   | July 3,2009        |   |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Service cost                   |   | $                  | 1,660  |   |             | $      | 1,684 |   |   | $ | 3,320 |   |   | $ | 3,368 |   |
| Interest cost                  |   |               | 4,605  |   |             |   | 4,500 |   |   |   | 9,210 |   |   |   | 9,000 |   |
| Expected return on plan assets |   |               | (3,745 | )      |             |   | (3,914 | ) |   |   | (7,490 | ) |   |   | (7,828 | ) |
| Amortization of:               |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Prior service costs            |   |               | (796   | )      |             |   | (518 | ) |   |   | (1,592 | ) |   |   | (1,036 | ) |
| Net loss                       |   |               | 246    |   |             |   | 12 |   |   |   | 492 |   |   |   | 24 |   |
| Net periodic pension cost      |   | $                  | 1,970  |   |             | $      | 1,764 |   |   | $ | 3,940 |   |   | $ | 3,528 |   |

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|                           |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------|--------|--------------------|---------|--------|------------------|--------|
| (In thousands)                 |   | July 3,2009        |    |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Interest cost                  |   | $                  | 182     |   |             | $      | 312 |   |   | $ | 355 |   |   | $ | 624 |   |
| Expected return on plan assets |   |               | (106    | )      |             |   | (131 | ) |   |   | (207 | ) |   |   | (263 | ) |
| Amortization of:               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                       |   |               | — |   |             |   | 52 |   |   |   | — |   |   |   | 103 |   |
| Net periodic pension cost (1)  |   | $                  | 76      |   |             | $      | 233 |   |   | $ | 148 |   |   | $ | 464 |   |

|                           |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (In thousands)                 |   | July 3,2009        |   |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Service cost                   |   | $                  | 16     |   |             | $      | 17 |   |   | $ | 32 |   |   | $ | 34 |   |
| Interest cost                  |   |               | 637    |   |             |   | 647 |   |   |   | 1,274 |   |   |   | 1,294 |   |
| Expected return on plan assets |   |               | (53    | )      |             |   | (74 | ) |   |   | (106 | ) |   |   | (148 | ) |
| Amortization of:               |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net gain                       |   |               | (36    | )      |             |   | (57 | ) |   |   | (72 | ) |   |   | (114 | ) |
| Net periodic benefit cost      |   | $                  | 564    |   |             | $      | 533 |   |   | $ | 1,128 |   |   | $ | 1,066 |   |

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6.  STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM 

|                                                                                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (In millions)                                                                                       |   | July 3,2009        |   |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Stock-based compensation expenses:                                                                  |   |               |   |   |             |   |   |   |   |   |   |   |
| Restricted stock awards and units                                                                   |   | $                  | 10.1   |   |             | $      | 7.7 |   |   | $ | 18.0 |   |   | $ | 14.3 |   |
| Employee stock purchase plan                                                                        |   |               | 0.1    |   |             |   | — |   |   |   | 0.8 |   |   |   | — |   |
| Stock-based compensation expenses                                                                   |   | $                  | 10.2   |   |             | $      | 7.7 |   |   | $ | 18.8 |   |   | $ | 14.3 |   |
|                                                                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total income tax benefits recognized in our net income related to stock-based compensation expenses |   | $                  | 3.9    |   |             | $      | 3.0 |   |   | $ | 7.2 |   |   | $ | 5.5 |   |

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| (In millions)                                                       |   | July 3,2009 |   |   | June 27,2008 |   |
|---------------------------------------------------------------------|--------|-------------|--------|--------|--------------|--------|
| Fair values of shares vested                                        |   | $           | 20.5   |   |         | $      | 17.6 |   |
| Grant date fair values of restricted stock awards and units granted |   | $           | 49.8   |   |         | $      | 37.5 |   |

|                         |   | Six Months EndedJuly 3, 2009 |      |
|------------------------------|--------|------------------------------|-----------|
|                         |   | Shares                       |      |   | Weighted-Average Grant Date Fair Value |   |
| Nonvested at January 2, 2009 |   |                         | 2,488,531 |   |   | $ | 40.37 |   |
| Granted                      |   |                         | 1,060,613 |   |   | $ | 46.93 |   |
| Vested                       |   |                         | (503,366  | ) |   | $ | 40.80 |   |
| Forfeited                    |   |                         | (127,773  | ) |   | $ | 42.44 |   |
| Nonvested at July 3, 2009    |   |                         | 2,918,005 |   |   | $ | 42.59 |   |

|                                        |   | Options |      |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term (in years) |   |   | Aggregate Intrinsic Value (in millions) |   |
|---------------------------------------------|--------|---------|-----------|--------|---------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------------------|--------|
| Outstanding at January 2, 2009              |   |    | 1,034,604 |   |                            | $      | 22.77  |                                                   |   |   | 4.31                                    |   |   | $ | 19.3 |   |
| Exercised                                   |   |    | (183,362  | )      |                            | $      | 22.17  |                                                   |   |   |                                    |   |   |   |   |   |
| Forfeited/expired/cancelled                 |   |    | (4,540    | )      |                            | $      | 22.12  |                                                   |   |   |                                    |   |   |   |   |   |
| Outstanding and exercisable at July 3, 2009 |   |    | 846,702   |   |                            | $      | 22.91  |                                                   |   |   | 3.87                                    |   |   | $ | 20.4 |   |

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7.  SEGMENT AND RELATED INFORMATION 

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|                                                    |   | Three Months Ended |    |   | Six Months Ended |   |
|---------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| (In millions)                                           |   | July 3,2009        |    |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Revenues                                                |   |               |    |   |             |   |   |   |   |   |   |   |
| URS Division                                            |   | $                  | 812.1   |   |             | $      | 887.6 |   |   | $ | 1,643.7 |   |   | $ | 1,706.8 |   |
| EG&G Division                                       |   |               | 652.7   |   |             |   | 576.2 |   |   |   | 1,287.1 |   |   |   | 1,125.5 |   |
| Washington Division                                     |   |               | 850.7   |   |             |   | 1,081.1 |   |   |   | 1,924.0 |   |   |   | 1,982.7 |   |
| Inter-segment, eliminations and other                   |   |               | (17.9   | )      |             |   | (14.0 | ) |   |   | (36.6 | ) |   |   | (25.0 | ) |
| Total revenues                                          |   | $                  | 2,297.6 |   |             | $      | 2,530.9 |   |   | $ | 4,818.2 |   |   | $ | 4,790.0 |   |
| Equity in income of unconsolidated joint ventures       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                                            |   | $                  | 0.9     |   |             | $      | 2.4 |   |   | $ | 3.4 |   |   | $ | 4.3 |   |
| EG&G Division                                       |   |               | 1.2     |   |             |   | 1.9 |   |   |   | 3.0 |   |   |   | 3.6 |   |
| Washington Division                                     |   |               | 16.2    |   |             |   | 22.7 |   |   |   | 51.9 |   |   |   | 48.8 |   |
| Total equity in income of unconsolidated joint ventures |   | $                  | 18.3    |   |             | $      | 27.0 |   |   | $ | 58.3 |   |   | $ | 56.7 |   |
| Contribution (1)                                        |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                                            |   | $                  | 71.6    |   |             | $      | 69.7 |   |   | $ | 137.0 |   |   | $ | 128.4 |   |
| EG&G Division                                       |   |               | 39.2    |   |             |   | 33.6 |   |   |   | 75.6 |   |   |   | 60.7 |   |
| Washington Division                                     |   |               | 34.3    |   |             |   | 49.0 |   |   |   | 105.3 |   |   |   | 92.2 |   |
| General and administrative expenses (2)            |   |               | (28.0   | )      |             |   | (26.0 | ) |   |   | (51.4 | ) |   |   | (46.4 | ) |
| Corporate interest expense                              |   |               | (11.4   | )      |             |   | (22.3 | ) |   |   | (25.3 | ) |   |   | (46.7 | ) |
| Total contribution                                      |   | $                  | 105.7   |   |             | $      | 104.0 |   |   | $ | 241.2 |   |   | $ | 188.2 |   |
| Operating income                                        |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                                            |   | $                  | 70.2    |   |             | $      | 67.0 |   |   | $ | 133.6 |   |   | $ | 124.4 |   |
| EG&G Division                                       |   |               | 38.1    |   |             |   | 32.7 |   |   |   | 73.9 |   |   |   | 59.1 |   |
| Washington Division                                     |   |               | 38.3    |   |             |   | 55.2 |   |   |   | 120.3 |   |   |   | 103.4 |   |
| General and administrative expenses (2)            |   |               | (20.6   | )      |             |   | (20.5 | ) |   |   | (38.7 | ) |   |   | (36.6 | ) |
| Total operating income                                  |   | $                  | 126.0   |   |             | $      | 134.4 |   |   | $ | 289.1 |   |   | $ | 250.3 |   |
| Depreciation and amortization                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                                            |   | $                  | 8.7     |   |             | $      | 7.6 |   |   | $ | 17.1 |   |   | $ | 16.6 |   |
| EG&G Division                                       |   |               | 5.6     |   |             |   | 5.9 |   |   |   | 11.3 |   |   |   | 11.6 |   |
| Washington Division                                     |   |               | 20.0    |   |             |   | 21.5 |   |   |   | 40.0 |   |   |   | 40.0 |   |
| Corporate and other                                     |   |               | 1.9     |   |             |   | 2.2 |   |   |   | 3.7 |   |   |   | 2.5 |   |
| Total depreciation and amortization                     |   | $                  | 36.2    |   |             | $      | 37.2 |   |   | $ | 72.1 |   |   | $ | 70.7 |   |

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

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

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|                                     |   | Three Months Ended July 3, 2009  |   |
|------------------------------------------|--------|----------------------------------|--------|
| (In millions)                            |   | URSDivision                      |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                             |   | $                                | 71.6   |   |   | $ | 39.2 |   |   | $ | 34.3 |   |   | $ | (28.0 | ) |   | $ | (11.4 | ) |   | $ | — |   |   | $ | 105.7 |   |
| Noncontrolling interests                 |   |                             | 1.6    |   |   |   | — |   |   |   | 6.8 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 8.4 |   |
| SFAS 123(R) expenses                     |   |                             | (3.3   | ) |   |   | (1.1 | ) |   |   | (2.8 | ) |   |   | 7.2 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other miscellaneous unallocated expenses |   |                             | 0.3    |   |   |   | — |   |   |   | — |   |   |   | 0.2 |   |   |   | 11.4 |   |   |   | — |   |   |   | 11.9 |   |
| Operating income (loss)                  |   | $                                | 70.2   |   |   | $ | 38.1 |   |   | $ | 38.3 |   |   | $ | (20.6 | ) |   | $ | — |   |   | $ | — |   |   | $ | 126.0 |   |
|                                     |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Three Months Ended June 27, 2008 |   |
| (In millions)                            |   | URSDivision                      |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                             |   | $                                | 69.7   |   |   | $ | 33.6 |   |   | $ | 49.0 |   |   | $ | (26.0 | ) |   | $ | (22.3 | ) |   | $ | — |   |   | $ | 104.0 |   |
| Noncontrolling interests                 |   |                             | (0.2   | ) |   |   | — |   |   |   | 7.7 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 7.5 |   |
| 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 |   |

|                                     |   | Six Months Ended July 3, 2009 |   |
|------------------------------------------|--------|-------------------------------|--------|
| (In millions)                            |   | URSDivision                   |   |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                             |   | $                             | 137.0  |   |   | $ | 75.6 |   |   | $ | 105.3 |   |   | $ | (51.4 | ) |   | $ | (25.3 | ) |   | $ | — |   |   | $ | 241.2 |   |
| Noncontrolling interests                 |   |                          | 2.2    |   |   |   | — |   |   |   | 19.1 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 21.3 |   |
| SFAS 123(R) expenses                     |   |                          | (6.3   | ) |   |   | (1.7 | ) |   |   | (4.4 | ) |   |   | 12.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other miscellaneous unallocated expenses |   |                          | 0.7    |   |   |   | — |   |   |   | 0.3 |   |   |   | 0.3 |   |   |   | 25.3 |   |   |   | — |   |   |   | 26.6 |   |
| Operating income (loss)                  |   | $                             | 133.6  |   |   | $ | 73.9 |   |   | $ | 120.3 |   |   | $ | (38.7 | ) |   | $ | — |   |   | $ | — |   |   | $ | 289.1 |   |
|                                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                     |   | Six Months Ended June 27, 2008 |    |
|------------------------------------------|--------|--------------------------------|---------|
| (In millions)                            |   | URSDivision                    |    |   | EG&GDivision |   |   | WashingtonDivision |   |   | Corporate |   |   | CorporateInterestExpense |   |   | Eliminations |   |   | Consolidated |   |
| Contribution                             |   | $                              | 128.4   |   |   | $ | 60.7 |   |   | $ | 92.2 |   |   | $ | (46.4 | ) |   | $ | (46.7 | ) |   | $ | — |   |   | $ | 188.2 |   |
| Noncontrolling interests                 |   |                           | — |   |   |   | — |   |   |   | 13.4 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 13.4 |   |
| 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 |   |

| (In millions)       |   | July 3, 2009 |     |   | January 2, 2009 |   |
|---------------------|--------|--------------|----------|--------|-----------------|--------|
| URS Division        |   | $            | 1,736.1  |   |            | $      | 1,615.3 |   |
| EG&G Division   |   |         | 1,482.3  |   |            |   | 1,487.6 |   |
| Washington Division |   |         | 3,389.7  |   |            |   | 3,596.9 |   |
| Corporate           |   |         | 5,203.7  |   |            |   | 5,059.3 |   |
| Eliminations        |   |         | (4,767.8 | )      |            |   | (4,757.9 | ) |
| Total assets        |   | $            | 7,044.0  |   |            | $      | 7,001.2 |   |

| (In millions)                                                      |   | July 3, 2009 |   |   | January 2, 2009 |   |
|--------------------------------------------------------------------|--------|--------------|--------|--------|-----------------|--------|
| URS Division                                                       |   | $            | 9.8    |   |            | $      | 10.5 |   |
| EG&G Division                                                  |   |         | 4.8    |   |            |   | 6.1 |   |
| Washington Division                                                |   |         | 70.2   |   |            |   | 253.0 |   |
| Total investments in and advances to unconsolidated joint ventures |   | $            | 84.8   |   |            | $      | 269.6 |   |

|           |   | Three Months Ended |    |   | Six Months Ended |   |
|----------------|--------|--------------------|---------|--------|------------------|--------|
| (In millions)  |   | July 3,2009        |    |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| Revenues       |   |               |    |   |             |   |   |   |   |   |   |   |
| United States  |   | $                  | 2,073.2 |   |             | $      | 2,287.2 |   |   | $ | 4,393.9 |   |   | $ | 4,349.7 |   |
| International  |   |               | 227.9   |   |             |   | 249.4 |   |   |   | 431.1 |   |   |   | 450.7 |   |
| Eliminations   |   |               | (3.5    | )      |             |   | (5.7 | ) |   |   | (6.8 | ) |   |   | (10.4 | ) |
| Total revenues |   | $                  | 2,297.6 |   |             | $      | 2,530.9 |   |   | $ | 4,818.2 |   |   | $ | 4,790.0 |   |

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| (In millions)                             |   | July 3,2009 |   |   | January 2,2009 |   |
|-------------------------------------------|--------|-------------|--------|--------|----------------|--------|
| Property and equipment at cost, net       |   |        |   |   |           |   |
| United States                             |   | $           | 234.6  |   |           | $      | 257.1 |   |
| International:                            |   |        |   |   |           |   |   |   |
| Bolivia (1)                          |   |        | 43.9   |   |           |   | 45.5 |   |
| Other foreign countries                   |   |        | 43.6   |   |           |   | 44.5 |   |
| Total international                       |   |        | 87.5   |   |           |   | 90.0 |   |
| Total property and equipment at cost, net |   | $           | 322.1  |   |           | $      | 347.1 |   |

| (1)   | Under the terms of a contract with one of our clients, we will sell substantially all of our assets located in Bolivia to this client.  See further discussion in Note 10, “Subsequent Event” below. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | Three Months Ended |   |   | Six Months Ended |   |
|---------------------|--------|--------------------|--------|--------|------------------|--------|
| (In millions)       |   | July 3,2009        |   |   | June 27,2008     |   |   | July 3,2009 |   |   | June 27,2008 |   |
| The U.S. Army (1)   |   |               |   |   |             |   |   |   |   |   |   |   |
| URS Division        |   | $                  | 35.1   |   |             | $      | 27.4 |   |   | $ | 68.9 |   |   | $ | 55.5 |   |
| EG&G Division   |   |               | 339.4  |   |             |   | 360.1 |   |   |   | 693.4 |   |   |   | 706.3 |   |
| Washington Division |   |               | 28.7   |   |             |   | 33.8 |   |   |   | 50.4 |   |   |   | 58.8 |   |
| Total U.S. Army     |   | $                  | 403.2  |   |             | $      | 421.3 |   |   | $ | 812.7 |   |   | $ | 820.6 |   |

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

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8.  COMMITMENTS AND CONTINGENCIES 

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

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

| ·   | Tampa-Hillsborough County Expressway Authority:  In 1999, URS Corporation Southern, our wholly owned subsidiary, entered into an agreement with the Tampa-Hillsborough County Expressway Authority (the “Authority”) to provide foundation design, project oversight and other servicesin 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 segmentof the elevated structure, though no significant injuries occurred as a result of the incident.  The Authority has completed remediation of the Expressway. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Rocky Mountain Arsenal:  In January 2002, URS Group, Inc., our wholly owned subsidiary, was awarded a contract by Foster Wheeler Environmental, Inc., to perform, among other things, foundation demolition and remediation of contaminated soil at the Rocky Mountain Arsenal in Colorado.  InOctober 2004, URS Group, Inc. filed a complaint asserting a breach of contract seeking recovery of the cost overruns against Foster Wheeler Environmental, Inc. and Tetra Tech FW, Inc. both subsidiaries of Tetra Tech, Inc. (“TTFW”), in District Court for the County of Denver in the State of Colorado.  In June 2006, the District Court issued a $1.1 million judgment against TTFW, granting some of URS Group, Inc.’s claims, but denying the largest claim.  URS Group, Inc. appealedthe judgment to the Colorado Court of Appeals in June 2006.  The Court of Appeals found that TTFW possessed information at the time of bidding that it did not disclose to bidders and issued a unanimous decision in favor of URS Group, Inc. in February 2008, which remanded the matter to the trial court for further proceedings.  On April 23, 2008, TTFW filed a petition for review with the Colorado Supreme Court.  The Colorado Supreme Court denied that petition, and the matter has beenremanded to the trial court for proceedings consistent with the findings of the Court of Appeals. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Minneapolis Bridge:  On August 1, 2007, the I-35W Bridge in Minneapolis, Minnesota collapsed resulting in 13 deaths, numerous injuries and substantial property loss.  In 2003, the Minnesota Department of Transportation retained URS Corporation (Nevada), our wholly owned subsidiary,to provide specific engineering analyses of components of the I-35W Bridge.  URS Corporation (Nevada) issued draft reports pursuant to this engagement.  URS Corporation (Nevada)’s services to the Minnesota Department of Transportation were ongoing at the time of the collapse.  The National Transportation Safety Board final report on the bridge collapse determined that the probable cause of the collapse was inadequate load capacity due to an error by the original bridge designerthat resulted in gusset plate failures due to the increased bridge weight from previous modifications as well as increased traffic and concentrated construction loads on the bridge on the day of the collapse.  URS Corporation (Nevada) was not involved in the original design or construction of the I-35W Bridge, nor were they involved in any of the maintenance and construction work being performed on the bridge when the collapse occurred. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 130 Liberty Street:  On August 18, 2007, two New York City firemen lost their lives and others were injured fighting a fire at a skyscraper undergoing decontamination and deconstruction at 130 Liberty Street in New York City.  One of our wholly owned subsidiaries, URS Corporation– New York, had been retained before the accident by the 130 Liberty Street property owner to advise, monitor and report on the general contractor’s performance as well as its compliance with the project’s contractual requirements.  In August 2007, the Manhattan District Attorney served subpoenas related to this accident on the property owner, URS Corporation - New York, the general contractor and its principal subcontractors, as well as the City of New York.  In December2008, the District Attorney issued criminal indictments against an employee of the general contractor responsible for safety at the project, its principal subcontractor and some of that subcontractor’s employees; however, URS Corporation – New York was not indicted. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | USAID Egyptian Projects:  In March 2003, WGI, the parent company acquired by us on November 15, 2007, was notified by the Department of Justice that the federal government was considering civil litigation against WGI for potential violations of the U.S. Agency for International Development(“USAID”) source, origin, and nationality regulations in connection with five of WGI’s USAID-financed host-country projects located in Egypt beginning in the early 1990s.  In November 2004, the federal government filed an action in the United States District Court for the District of Idaho against WGI and Contrack International, Inc., an Egyptian construction company, asserting violations under the Federal False Claims Act, the Federal Foreign Assistance Act of 1961, and common lawtheories 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 remediationservices 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:  Washington Holdings, Inc., a wholly owned subsidiary, has a 50% interest in a joint venture that is performing a $401 million fixed-price highway and toll road project in California that is fully operational and essentially complete as of July 3, 2009.  Prior to the acquisitionof WGI, Washington Holdings, Inc. recorded significant losses on the project resulting from various developments, including final design and other customer specifications, state regulatory agency requirements, material quantity and cost growth, higher subcontractor and labor costs, and the impact of schedule delays.  The joint venture is actively pursuing reimbursement of significant highway and toll road project claims against the project owner.  The highway claims were initiated in the SuperiorCourt of San Diego County (“Superior Court”) in July 2006 and the toll road claims were initiated in arbitration, under JAMS arbitration rules, in July 2005. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Common Sulfur Project:  One of our wholly owned subsidiaries, WGI – Middle East, Inc., 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 projectwill treat and distribute sulfur produced by a new liquid natural gas 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 $24 million against the consortium if various phases of the project are not completed by certain dates.  If liquidated damages are assessed, a significant portion may be attributable to WGI – Middle East, Inc. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (In thousands)                               |   | Three Months EndedJuly 3, 2009 |   |   | Six Months EndedJuly 3, 2009 |   |
|----------------------------------------------|--------|--------------------------------|--------|--------|------------------------------|--------|
| Restructuring reserve at beginning of period |   | $                              | 11,075 |   |                         | $      | 13,262 |   |
| Payments                                     |   |                           | (1,834 | )      |                         |   | (4,021 | ) |
| Adjustments                                  |   |                           | (1,216 | )      |                         |   | (1,216 | ) |
| Balance as of July 3, 2009                   |   | $                              | 8,025  |   |                         | $      | 8,025 |   |

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NOTE 10.  SUBSEQUENT EVENT

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

“URS Corporation and Subsidiaries” regardingforward-looking statements on page 1
Part II – Item 1A, “Risk Factors,” beginning on page 76
condensed consolidated financial statements
notes

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|                      |   | As of       |   |
|---------------------------|--------|-------------|--------|
| (In billions)             |   | July 3,2009 |   |   | January 2,2009 |   |
| Backlog:                  |   |        |   |   |   |   |
| Power                     |   | $           | 1.6    |   |   | $ | 1.8 |   |
| Infrastructure            |   |        | 2.4    |   |   |   | 2.3 |   |
| Industrial and commercial |   |        | 1.8    |   |   |   | 2.9 |   |
| Federal                   |   |        | 12.3   |   |   |   | 10.2 |   |
| Total backlog             |   | $           | 18.1   |   |   | $ | 17.2 |   |

| (In billions)                 |   | URSDivision |   |   | EG&GDivision |   |   | Washington Division |   |   | Total  |   |
|-------------------------------|--------|-------------|--------|--------|------------------|--------|--------|---------------------|--------|--------|--------|--------|
| As of July 3, 2009            |   |        |   |   |             |   |   |                |   |   |   |   |
| Backlog                       |   | $           | 2.9    |   |             | $      | 7.2    |                |   | $      | 8.0    |   |   | $ | 18.1 |   |
| Option years                  |   |        | 0.4    |   |             |   | 2.2    |                |   |   | 2.4    |   |   |   | 5.0 |   |
| Indefinite delivery contracts |   |        | 4.4    |   |             |   | 2.0    |                |   |   | 1.3    |   |   |   | 7.7 |   |
| Total book of business        |   | $           | 7.7    |   |             | $      | 11.4   |                |   | $      | 11.7   |   |   | $ | 30.8 |   |
|                          |   |        |   |   |             |   |   |                |   |   |   |   |   |   |   |   |
| As of January 2, 2009         |   |        |   |   |             |   |   |                |   |   |   |   |   |   |   |   |
| Backlog                       |   | $           | 2.8    |   |             | $      | 7.7    |                |   | $      | 6.7    |   |   | $ | 17.2 |   |
| Option years                  |   |        | 0.5    |   |             |   | 2.2    |                |   |   | 1.6    |   |   |   | 4.3 |   |
| Indefinite delivery contracts |   |        | 4.0    |   |             |   | 2.1    |                |   |   | 1.5    |   |   |   | 7.6 |   |
| Total book of business (1)    |   | $           | 7.3    |   |             | $      | 12.0   |                |   | $      | 9.8    |   |   | $ | 29.1 |   |

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

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|                                                                       |   | Three Months Ended |     |
|----------------------------------------------------------------------------|--------|--------------------|----------|
| (In millions, except percentages and per share amounts)                    |   | July 3,2009        |     |   | June 27,2008 |   |   | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
| Revenues                                                                   |   | $                  | 2,297.6  |   |   | $ | 2,530.9 |   |   | $ | (233.3 | ) |   |   | (9.2 | %) |
| Cost of revenues                                                           |   |               | (2,169.3 | ) |   |   | (2,403.0 | ) |   |   | (233.7 | ) |   |   | (9.7 | %) |
| General and administrative expenses                                        |   |               | (20.6    | ) |   |   | (20.5 | ) |   |   | 0.1 |   |   |   | 0.5 | % |
| Equity in income of unconsolidated joint ventures                          |   |               | 18.3     |   |   |   | 27.0 |   |   |   | (8.7 | ) |   |   | (32.2 | %) |
| Operating income                                                           |   |               | 126.0    |   |   |   | 134.4 |   |   |   | (8.4 | ) |   |   | (6.3 | %) |
| Interest expense                                                           |   |               | (11.9    | ) |   |   | (23.1 | ) |   |   | (11.2 | ) |   |   | (48.5 | %) |
| Other income, net                                                          |   |               | 55.5     |   |   |   | — |   |   |   | 55.5 |   |   |   | 100.0 | % |
| Income before income taxes                                                 |   |               | 169.6    |   |   |   | 111.3 |   |   |   | 58.3 |   |   |   | 52.4 | % |
| Income tax expense                                                         |   |               | (69.5    | ) |   |   | (47.5 | ) |   |   | 22.0 |   |   |   | 46.3 | % |
| Net income                                                                 |   |               | 100.1    |   |   |   | 63.8 |   |   |   | 36.3 |   |   |   | 56.9 | % |
| Noncontrolling interest in income of consolidated subsidiaries, net of tax |   |               | (5.0     | ) |   |   | (4.4 | ) |   |   | 0.6 |   |   |   | 13.6 | % |
| Net income attributable to URS                                             |   | $                  | 95.1     |   |   | $ | 59.4 |   |   | $ | 35.7 |   |   |   | 60.1 | % |
|                                                                       |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                                 |   | $                  | 1.16     |   |   | $ | .70 |   |   | $ | .46 |   |   |   | 65.7 | % |

|                                |   | Three Months Ended |    |
|-------------------------------------|--------|--------------------|---------|
| (In millions, except percentages)   |   | July 3,2009        |    |   | June 27,2008 |   |   | Increase (Decrease) |   |   | Percentage Increase (Decrease) |   |
| Revenues                            |   |               |    |   |   |   |   |   |   |   |   |   |
| Power sector                        |   |               |    |   |   |   |   |   |   |   |   |   |
| URS Division                        |   | $                  | 34.1    |   |   | $ | 96.9 |   |   | $ | (62.8 | ) |   |   | (64.8 | %) |
| EG&G Division                   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |               | 317.9   |   |   |   | 409.3 |   |   |   | (91.4 | ) |   |   | (22.3 | %) |
| Power Total                         |   |               | 352.0   |   |   |   | 506.2 |   |   |   | (154.2 | ) |   |   | (30.5 | %) |
| Infrastructure sector               |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |               | 358.8   |   |   |   | 362.0 |   |   |   | (3.2 | ) |   |   | (0.9 | %) |
| EG&G Division                   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |               | 59.1    |   |   |   | 87.7 |   |   |   | (28.6 | ) |   |   | (32.6 | %) |
| Infrastructure Total                |   |               | 417.9   |   |   |   | 449.7 |   |   |   | (31.8 | ) |   |   | (7.1 | %) |
| Federal sector                      |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |               | 181.1   |   |   |   | 146.8 |   |   |   | 34.3 |   |   |   | 23.4 | % |
| EG&G Division                   |   |               | 652.2   |   |   |   | 575.8 |   |   |   | 76.4 |   |   |   | 13.3 | % |
| Washington Division                 |   |               | 179.7   |   |   |   | 107.8 |   |   |   | 71.9 |   |   |   | 66.7 | % |
| Federal Total                       |   |               | 1,013.0 |   |   |   | 830.4 |   |   |   | 182.6 |   |   |   | 22.0 | % |
| Industrial and Commercial sector    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |               | 225.2   |   |   |   | 273.3 |   |   |   | (48.1 | ) |   |   | (17.6 | %) |
| EG&G Division                   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |               | 289.5   |   |   |   | 471.3 |   |   |   | (181.8 | ) |   |   | (38.6 | %) |
| Industrial and Commercial Total     |   |               | 514.7   |   |   |   | 744.6 |   |   |   | (229.9 | ) |   |   | (30.9 | %) |
| Total revenues, net of eliminations |   | $                  | 2,297.6 |   |   | $ | 2,530.9 |   |   | $ | (233.3 | ) |   |   | (9.2 | %) |

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| (In millions, except percentages)                                                        |   | Revenues |    |   | Cost of Revenues |   |     | General and Administrative Expenses |   |   | Equity in Income of Unconsolidated Joint Ventures |   |   | Operating Income (Loss) |    |
|------------------------------------------------------------------------------------------|--------|----------|---------|--------|------------------|--------|----------|-------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-------------------------|---------|
|                                                                                     |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |
| Three months ended July 3, 2009                                                          |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |
| URS Division                                                                             |   | $        | 812.1   |   |             | $      | (742.8   | )                                   |   | $      | —                                           |   |   | $                       | 0.9     |   |   | $ | 70.2 |   |
| EG&G Division                                                                        |   |     | 652.7   |   |             |   | (615.8   | )                                   |   |   | —                                           |   |   |                    | 1.2     |   |   |   | 38.1 |   |
| Washington Division                                                                      |   |     | 850.7   |   |             |   | (828.6   | )                                   |   |   | —                                           |   |   |                    | 16.2    |   |   |   | 38.3 |   |
| Eliminations                                                                             |   |     | (17.9   | )      |             |   | 17.9     |                                |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                                |   |     | — |   |             |   | —  |                                |   |   | (20.6                                             | )      |   |                    | — |   |   |   | (20.6 | ) |
| Total                                                                                    |   | $        | 2,297.6 |   |             | $      | (2,169.3 | )                                   |   | $      | (20.6                                             | )      |   | $                       | 18.3    |   |   | $ | 126.0 |   |
|                                                                                     |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| 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 |   |
|                                                                                     |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| Increase (decrease) for the three months ended July 3, 2009 and June 27, 2008            |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |
| URS Division                                                                             |   | $        | (75.5   | )      |             | $      | (80.2    | )                                   |   | $      | —                                           |   |   | $                       | (1.5    | ) |   | $ | 3.2 |   |
| EG&G Division                                                                        |   |     | 76.5    |   |             |   | 70.4     |                                |   |   | —                                           |   |   |                    | (0.7    | ) |   |   | 5.4 |   |
| Washington Division                                                                      |   |     | (230.4  | )      |             |   | (220.0   | )                                   |   |   | —                                           |   |   |                    | (6.5    | ) |   |   | (16.9 | ) |
| Eliminations                                                                             |   |     | (3.9    | )      |             |   | (3.9     | )                                   |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                                |   |     | — |   |             |   | —  |                                |   |   | 0.1                                               |   |   |                    | — |   |   |   | (0.1 | ) |
| Total                                                                                    |   | $        | (233.3  | )      |             | $      | (233.7   | )                                   |   | $      | 0.1                                               |   |   | $                       | (8.7    | ) |   | $ | (8.4 | ) |
|                                                                                     |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| Percentage increase (decrease) for the three months ended July 3, 2009 and June 27, 2008 |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |
| URS Division                                                                             |   |     | (8.5    | %)     |             |   | (9.7     | %)                                  |   |   | —                                           |   |   |                    | (62.5   | %) |   |   | 4.8 | % |
| EG&G Division                                                                        |   |     | 13.3    | %      |             |   | 12.9     | %                                   |   |   | —                                           |   |   |                    | (36.8   | %) |   |   | 16.5 | % |
| Washington Division                                                                      |   |     | (21.3   | %)     |             |   | (21.0    | %)                                  |   |   | —                                           |   |   |                    | (28.6   | %) |   |   | (30.6 | %) |
| Eliminations                                                                             |   |     | 27.9    | %      |             |   | 27.9     | %                                   |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                                |   |     | — |   |             |   | —  |                                |   |   | 0.5                                               | %      |   |                    | — |   |   |   | 0.5 | % |
| Total                                                                                    |   |     | (9.2    | %)     |             |   | (9.7     | %)                                  |   |   | 0.5                                               | %      |   |                    | (32.2   | %) |   |   | (6.3 | %) |

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|                                                                       |   | Six Months Ended |     |
|----------------------------------------------------------------------------|--------|------------------|----------|
| (In millions, except percentages and per share amounts)                    |   | July 3,2009      |     |   | June 27,2008 |   |   | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
| Revenues                                                                   |   | $                | 4,818.2  |   |   | $ | 4,790.0 |   |   | $ | 28.2 |   |   |   | 0.6 | % |
| Cost of revenues                                                           |   |             | (4,548.7 | ) |   |   | (4,559.8 | ) |   |   | (11.1 | ) |   |   | (0.2 | %) |
| General and administrative expenses                                        |   |             | (38.7    | ) |   |   | (36.6 | ) |   |   | 2.1 |   |   |   | 5.7 | % |
| Equity in income of unconsolidated joint ventures                          |   |             | 58.3     |   |   |   | 56.7 |   |   |   | 1.6 |   |   |   | 2.8 | % |
| Operating income                                                           |   |             | 289.1    |   |   |   | 250.3 |   |   |   | 38.8 |   |   |   | 15.5 | % |
| Interest expense                                                           |   |             | (26.6    | ) |   |   | (48.7 | ) |   |   | (22.1 | ) |   |   | (45.4 | %) |
| Other income, net                                                          |   |             | 47.9     |   |   |   | — |   |   |   | 47.9 |   |   |   | 100.0 | % |
| Income before income taxes                                                 |   |             | 310.4    |   |   |   | 201.6 |   |   |   | 108.8 |   |   |   | 54.0 | % |
| Income tax expense                                                         |   |             | (127.1   | ) |   |   | (85.0 | ) |   |   | 42.1 |   |   |   | 49.5 | % |
| Net income                                                                 |   |             | 183.3    |   |   |   | 116.6 |   |   |   | 66.7 |   |   |   | 57.2 | % |
| Noncontrolling interest in income of consolidated subsidiaries, net of tax |   |             | (12.7    | ) |   |   | (7.8 | ) |   |   | 4.9 |   |   |   | 62.8 | % |
| Net income attributable to URS                                             |   | $                | 170.6    |   |   | $ | 108.8 |   |   | $ | 61.8 |   |   |   | 56.8 | % |
|                                                                       |   |             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                                 |   | $                | 2.08     |   |   | $ | 1.29 |   |   | $ | .79 |   |   |   | 61.2 | % |

|                                |   | Six Months Ended |    |
|-------------------------------------|--------|------------------|---------|
| (In millions, except percentages)   |   | July 3,2009      |    |   | June 27,2008 |   |   | Increase (Decrease) |   |   | Percentage Increase (Decrease) |   |
| Revenues                            |   |             |    |   |   |   |   |   |   |   |   |   |
| Power sector                        |   |             |    |   |   |   |   |   |   |   |   |   |
| URS Division                        |   | $                | 81.8    |   |   | $ | 148.9 |   |   | $ | (67.1 | ) |   |   | (45.1 | %) |
| EG&G Division                   |   |             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |             | 698.9   |   |   |   | 758.0 |   |   |   | (59.1 | ) |   |   | (7.8 | %) |
| Power Total                         |   |             | 780.7   |   |   |   | 906.9 |   |   |   | (126.2 | ) |   |   | (13.9 | %) |
| Infrastructure sector               |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |             | 728.8   |   |   |   | 701.5 |   |   |   | 27.3 |   |   |   | 3.9 | % |
| EG&G Division                   |   |             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |             | 136.7   |   |   |   | 171.2 |   |   |   | (34.5 | ) |   |   | (20.2 | %) |
| Infrastructure Total                |   |             | 865.5   |   |   |   | 872.7 |   |   |   | (7.2 | ) |   |   | (0.8 | %) |
| Federal sector                      |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |             | 345.1   |   |   |   | 304.2 |   |   |   | 40.9 |   |   |   | 13.4 | % |
| EG&G Division                   |   |             | 1,285.8 |   |   |   | 1,124.5 |   |   |   | 161.3 |   |   |   | 14.3 | % |
| Washington Division                 |   |             | 333.3   |   |   |   | 223.7 |   |   |   | 109.6 |   |   |   | 49.0 | % |
| Federal Total                       |   |             | 1,964.2 |   |   |   | 1,652.4 |   |   |   | 311.8 |   |   |   | 18.9 | % |
| Industrial and Commercial sector    |   |             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| URS Division                        |   |             | 459.4   |   |   |   | 542.8 |   |   |   | (83.4 | ) |   |   | (15.4 | %) |
| EG&G Division                   |   |             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Washington Division                 |   |             | 748.4   |   |   |   | 815.2 |   |   |   | (66.8 | ) |   |   | (8.2 | %) |
| Industrial and Commercial Total     |   |             | 1,207.8 |   |   |   | 1,358.0 |   |   |   | (150.2 | ) |   |   | (11.1 | %) |
| Total revenues, net of eliminations |   | $                | 4,818.2 |   |   | $ | 4,790.0 |   |   | $ | 28.2 |   |   |   | 0.6 | % |

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Reporting Segments

| (In millions, except percentages)                                                      |   | Revenues |    |   | Cost of Revenues |   |     | General and Administrative Expenses |   |   | Equity in Income of Unconsolidated Joint Ventures |   |   | Operating Income (Loss) |    |
|----------------------------------------------------------------------------------------|--------|----------|---------|--------|------------------|--------|----------|-------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-------------------------|---------|
|                                                                                   |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |
| Six months ended July 3, 2009                                                          |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |
| URS Division                                                                           |   | $        | 1,643.7 |   |             | $      | (1,513.5 | )                                   |   | $      | —                                           |   |   | $                       | 3.4     |   |   | $ | 133.6 |   |
| EG&G Division                                                                      |   |     | 1,287.1 |   |             |   | (1,216.2 | )                                   |   |   | —                                           |   |   |                    | 3.0     |   |   |   | 73.9 |   |
| Washington Division                                                                    |   |     | 1,924.0 |   |             |   | (1,855.6 | )                                   |   |   | —                                           |   |   |                    | 51.9    |   |   |   | 120.3 |   |
| Eliminations                                                                           |   |     | (36.6   | )      |             |   | 36.6     |                                |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                              |   |     | — |   |             |   | —  |                                |   |   | (38.7                                             | )      |   |                    | — |   |   |   | (38.7 | ) |
| Total                                                                                  |   | $        | 4,818.2 |   |             | $      | (4,548.7 | )                                   |   | $      | (38.7                                             | )      |   | $                       | 58.3    |   |   | $ | 289.1 |   |
|                                                                                   |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| 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 |   |
|                                                                                   |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| Increase (decrease) for the six months ended July 3, 2009 and June 27, 2008            |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |
| URS Division                                                                           |   | $        | (63.1   | )      |             | $      | (73.2    | )                                   |   | $      | —                                           |   |   | $                       | (0.9    | ) |   | $ | 9.2 |   |
| EG&G Division                                                                      |   |     | 161.6   |   |             |   | 146.2    |                                |   |   | —                                           |   |   |                    | (0.6    | ) |   |   | 14.8 |   |
| Washington Division                                                                    |   |     | (58.7   | )      |             |   | (72.5    | )                                   |   |   | —                                           |   |   |                    | 3.1     |   |   |   | 16.9 |   |
| Eliminations                                                                           |   |     | (11.6   | )      |             |   | (11.6    | )                                   |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                              |   |     | — |   |             |   | —  |                                |   |   | 2.1                                               |   |   |                    | — |   |   |   | (2.1 | ) |
| Total                                                                                  |   | $        | 28.2    |   |             | $      | (11.1    | )                                   |   | $      | 2.1                                               |   |   | $                       | 1.6     |   |   | $ | 38.8 |   |
|                                                                                   |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |   |   |   |
| Percentage increase (decrease) for the six months ended July 3, 2009 and June 27, 2008 |   |     |    |   |             |   |     |                                |   |   |                                              |   |   |                    |    |   |   |
| URS Division                                                                           |   |     | (3.7    | %)     |             |   | (4.6     | %)                                  |   |   | —                                           |   |   |                    | (20.9   | %) |   |   | 7.4 | % |
| EG&G Division                                                                      |   |     | 14.4    | %      |             |   | 13.7     | %                                   |   |   | —                                           |   |   |                    | (16.7   | %) |   |   | 25.0 | % |
| Washington Division                                                                    |   |     | (3.0    | %)     |             |   | (3.8     | %)                                  |   |   | —                                           |   |   |                    | 6.4     | % |   |   | 16.3 | % |
| Eliminations                                                                           |   |     | 46.4    | %      |             |   | 46.4     | %                                   |   |   | —                                           |   |   |                    | — |   |   |   | — |   |
| Corporate                                                                              |   |     | — |   |             |   | —  |                                |   |   | 5.7                                               | %      |   |                    | — |   |   |   | 5.7 | % |
| Total                                                                                  |   |     | 0.6     | %      |             |   | (0.2     | %)                                  |   |   | 5.7                                               | %      |   |                    | 2.8     | % |   |   | 15.5 | % |

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LIQUIDITY AND CAPITAL RESOURCES 

|                                 |   | Six Months Ended |   |
|--------------------------------------|--------|------------------|--------|
| (In millions)                        |   | July 3,2009      |   |   | June 27,2008 |   |
| Cash flows from operating activities |   | $                | 321.2  |   |   | $ | 210.2 |   |
| Cash flows from investing activities |   |             | 60.6   |   |   |   | (60.7 | ) |
| Cash flows from financing activities |   |             | (157.8 | ) |   |   | (128.1 | ) |

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Note10

|                                                                       |   | 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)                                              |   | $                                      | 968.0   |   |   | $ | 100.0 |   |   | $ | 466.4 |   |   | $ | 401.6 |   |   | $ | — |   |   | $ | — |   |
| Capital lease obligations and equipment notes (1)                          |   |                                   | 15.5    |   |   |   | 6.3 |   |   |   | 7.4 |   |   |   | 1.8 |   |   |   | — |   |   |   | — |   |
| Notes payable, foreign credit lines and other indebtedness (1)             |   |                                   | 28.4    |   |   |   | 10.7 |   |   |   | 14.7 |   |   |   | 3.0 |   |   |   | — |   |   |   | — |   |
| Total debt                                                                 |   |                                   | 1,011.9 |   |   |   | 117.0 |   |   |   | 488.5 |   |   |   | 406.4 |   |   |   | — |   |   |   | — |   |
| Operating lease obligations (2)                                       |   |                                   | 518.9   |   |   |   | 146.6 |   |   |   | 207.2 |   |   |   | 114.4 |   |   |   | 50.7 |   |   |   | — |   |
| Pension and other retirement plans funding requirements (3)                |   |                                   | 256.7   |   |   |   | 30.7 |   |   |   | 39.7 |   |   |   | 61.0 |   |   |   | 125.3 |   |   |   | — |   |
| Interest (4)                                                          |   |                                   | 125.5   |   |   |   | 29.7 |   |   |   | 80.3 |   |   |   | 15.5 |   |   |   | — |   |   |   | — |   |
| Purchase obligations (5)                                              |   |                                   | 9.6     |   |   |   | 6.7 |   |   |   | 2.9 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Asset retirement obligations (6)                                      |   |                                   | 3.9     |   |   |   | 0.8 |   |   |   | 1.0 |   |   |   | 1.7 |   |   |   | 0.4 |   |   |   | — |   |
| Other contractual obligations (7)                                     |   |                                   | 52.6    |   |   |   | 26.2 |   |   |   | 8.5 |   |   |   | 2.1 |   |   |   | — |   |   |   | 15.8 |   |
| Total contractual obligations                                              |   | $                                      | 1,979.1 |   |   | $ | 357.7 |   |   | $ | 828.1 |   |   | $ | 601.1 |   |   | $ | 176.4 |   |   | $ | 15.8 |   |

| (1)   | Amounts shown exclude unamortized debt issuance costs of $13.3 million for the 2007 Credit Facility.  For capital lease obligations, amounts shown exclude interest of $1.4 million. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (7)   | Other contractual obligations include net liabilities for anticipated settlements under Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109” (“FIN 48”) taxliabilities, 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 our liquidity. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Letters of credit primarily to support project performance, insurance programs, bonding arrangements and real estate leases.  As of July 3, 2009, we had $206.3 million in standby letters of credit under our 2007 Credit Facility.  We are required to reimburse the issuers of letters of credit for any payments they make under the outstandingletters 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 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 theunderlying credit facility.  Performance on this contract has ended and the guarantee was terminated in April 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have guaranteed a letter of credit issued on behalf of one of our unconsolidated construction joint ventures, in which we are a 60% owner with no significant influence over operations.  The total amount of the letter of credit was $7.2 million as of July 3, 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have agreed to indemnify one of our joint venture partners up to $25.0 million for any potential losses and damages, and liabilities associated with lawsuits in relation to general and administrative services we provide to the joint venture.  Currently, we have no indemnified claims under this guarantee. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As of July 3, 2009, 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 $8.4 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 guaranteedprojects is available and monetary damages or other costs or losses are determined to be probable, we recognize such guarantee losses. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In the ordinary course of business, we enter into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated subsidiaries, joint ventures, and other jointly executed contracts.  We entered into these agreements primarily to support the project execution commitments of these entities.  Thepotential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts.  However, we are not able to estimate other amounts that may be required to be paid in excess of estimated costs to complete contracts and, accordingly, the total potential payment amount under our outstanding performance guarantees cannot be estimated.  For cost-plus contracts, amounts that maybecome 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 thirdparties, such as owners, co-venturers, subcontractors or vendors, for claims. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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| (In millions, except percentages)                                     |   | Six Months EndedJuly 3, 2009 |    |   | Year EndedJanuary 2, 2009 |   |
|-----------------------------------------------------------------------|--------|------------------------------|---------|--------|---------------------------|--------|
| Effective average interest rates paid on the revolving line of credit |   |                         | 1.6     | %      |                      |   | 5.6 | % |
| Average daily revolving line of credit balances                       |   | $                            | — |   |                      | $      | 0.2 |   |
| Maximum amounts outstanding at any one point in time                  |   | $                            | 0.3     |   |                      | $      | 7.7 |   |

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Note1

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|                                      |   | Infrastructure and Miningas of June 11, 2009 |   |
|-------------------------------------------|--------|----------------------------------------------|--------|
| Discount rate                             |   |                                         | 13.0   | % |
| Compounded annual revenue growth rate (1) |   |                                         | 12.5   | % |
| Average operating margin (1)         |   |                                         | 5.5    | % |
| Capitalization rate (1)              |   |                                         | 8.0    | % |

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

|                        |   | Discount Rate Used |   |   | Breakeven Discount Rate |   |   | Capitalization Rate Used |   |   | Breakeven Capitalization Rate |   |
|-----------------------------|--------|--------------------|--------|--------|-------------------------|--------|--------|--------------------------|--------|--------|-------------------------------|--------|
| As of June 11, 2009         |   |               |   |   |                    |   |   |                     |   |   |                          |   |
| Infrastructure & Mining |   |               | 13.00  | %      |                    |   | 13.14  | %                        |   |   | 8.00                          | %      |   |   | 8.29 | % |

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| (In millions)                                                                                         |   | Infrastructure and Miningas ofJune 11, 2009 |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
| Excess of fair value over carrying value                                                              |   | $                                           | 9      |   |
|                                                                                                  |   |                                        |   |   |
| Reductions in the Excess of Fair Value Over Carrying Value Resulting from Changes in Key Assumptions: |   |                                        |   |   |
| Increase of 50 basis points in discount rate                                                          |   |                                        | (31    | ) |
| Increase of 50 basis points in capitalization rate                                                    |   |                                        | (15    | ) |
| Reduction in operating margin of 5%                                                                   |   |                                        | (22    | ) |
| Reduction in operating margin of 10%                                                                  |   |                                        | (44    | ) |
| Reduction in revenue growth of 15%                                                                    |   |                                        | (34    | ) |
| Reduction in revenue growth of 30%                                                                    |   |                                        | (66    | ) |

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In September 2006, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurement” (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value under GAAP, andexpands disclosure requirements about fair value measurements.  SFAS 157 applies to other accounting pronouncements that require or permit fair value measurements.  The fair value measurement of financial assets and financial liabilities became effective for us beginning in fiscal year 2008.  Four FASB Staff Positions (“FSP”) on this statement were subsequently issued.  FSP No. 157-1, “Application of FASBStatement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13,” issued on February 14, 2007, excluded SFAS No. 13, “Accounting for Leases” (“SFAS 13”), and other accounting pronouncements that address fair value measurements for purposes of lease classification or measurement under SFAS 13.  However,this scope exception does not apply to assets acquired and liabilities assumed in a business combination, which are required to be measured at fair value under SFAS No. 141, “Business Combinations” (“SFAS 141”), or SFAS No. 141(R), “Business Combinations (Revised 2007)” (“SFAS 141(R)”), regardless of whether those assets and liabilities are related toleases.  This FSP was effective upon our initial adoption of SFAS 157.  FSP No. 157-2, “Effective Date of FASB Statement No. 157” (“FSP 157-2”), issued on February 12, 2007, delayed the effective date of this statement for non-financial assets and non-financial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis.  This FSP became effective forus at the beginning of our 2009 fiscal year.  FSP No. 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active,” issued on October 10, 2008, clarified the application of SFAS 157 for financial assets when the market for that asset is not active.  This FSP was effective upon issuance.  FSP No. 157-4, “Determining FairValue When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” (“FSP 157-4”) issued on April 9, 2009, became effective for us at the beginning of our second fiscal quarter, which ended on July 3, 2009.  This FSP provides additional guidance on (i) determining when the volume and level of activity for the asset or liability has significantly decreased, (ii) identifying circumstances in whicha transaction is not orderly, and (iii) understanding the fair value measurement implications of both (i) and (ii). 

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

ITEM 4.  CONTROLS AND PROCEDURES 

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ITEM 1.  LEGAL PROCEEDINGS 

Note8

ITEM 1A.  RISK FACTORS 

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

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

| ·   | adversely affect our ability to obtain surety bonds; |
|--------------------|------------------------------------------------------|

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

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

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

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

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

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

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

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

| ·   | make investments and other restricted payments; |
|--------------------|-------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| ·   | maintaining employee morale and retaining key employees; |
|--------------------|----------------------------------------------------------|

| ·   | integrating the business cultures of both companies; |
|--------------------|------------------------------------------------------|

| ·   | preserving important strategic and customer relationships; |
|--------------------|------------------------------------------------------------|

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

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

| ·   | coordinating geographically separate organizations. |
|--------------------|-----------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

| 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 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|----------------------------------|--------|---------|------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
| April 4, 2009 – May 1, 2009                                                                                                                                                                                 |   |                                     | — |   |                             | $      | — |                                                                                     |   |   | —                                                                            |   |   |   | — |   |
| May 2, 2009 – May 29, 2009                                                                                                                                                                                  |   |                                     | 73      |   |                             |   | 46.00   |                                                                                     |   |   | —                                                                            |   |   |   | — |   |
| May 30, 2009 – July 3, 2009                                                                                                                                                                                 |   |                                     | 9       |   |                             |   | 52.45   |                                                                                     |   |   | —                                                                            |   |   |   | 2,992 |   |
| Total                                   |   |                                     | 82      |   |                             |   |    |                                                                                     |   |   | —                                                                            |   |   |   | 2,992 |   |

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

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| (2)   | On March 26, 2007, we announced that our Board of Directors approved a common stock repurchase program that will allow the repurchase of up to one million shares of our common stock plus additional shares issued or deemed issued under our stock incentive plans and Employee Stock Purchase Plan for the period from December 30, 2006 through January 1, 2010(excluding shares issuable upon the exercise of options granted prior to December 30, 2006).  Our stock repurchase program will terminate on January 1, 2010.  Pursuant to our 2007 Credit Facility, we are subject to covenants that will limit our ability to repurchase our common stock.  However, we amended our 2007 Credit Facility on June 19, 2008 so that we are allowed to repurchase up to one million shares of common stock annually if we maintain various designated financial criteria.  Duringthe six months ended July 3, 2009, we completed the repurchase of 0.6 million shares. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES 

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 

| 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                       |   |             | 71,275,195 |   |   |   | 5,708,701 |   |   |   | 48,278 |   |
| Armen Der Marderosian                  |   |             | 71,234,194 |   |   |   | 5,749,137 |   |   |   | 48,843 |   |
| Mickey P. Foret                        |   |             | 73,239,277 |   |   |   | 3,743,862 |   |   |   | 49,035 |   |
| Lydia H. Kennard                       |   |             | 74,088,514 |   |   |   | 2,911,168 |   |   |   | 32,492 |   |
| Martin M. Koffel                       |   |             | 71,076,017 |   |   |   | 5,327,872 |   |   |   | 628,285 |   |
| General Joseph W. Ralston, USAF (Ret.) |   |             | 71,360,416 |   |   |   | 5,624,383 |   |   |   | 47,375 |   |
| John D. Roach                          |   |             | 70,986,005 |   |   |   | 5,997,344 |   |   |   | 48,825 |   |
| Douglas W. Stotlar                     |   |             | 71,289,474 |   |   |   | 5,675,634 |   |   |   | 67,066 |   |
| William P. Sullivan                    |   |             | 72,461,252 |   |   |   | 4,489,712 |   |   |   | 81,210 |   |
| William D. Walsh                       |   |             | 71,296,804 |   |   |   | 5,688,476 |   |   |   | 46,894 |   |

| 2.   | The stockholders voted to ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for our 2009 fiscal year. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Number of Shares |       |
|------------------|--------|------------------|------------|
| For              |   |             | 74,802,017 |   |
| Against          |   |             | 2,171,747  |   |
| Abstain          |   |             | 58,410     |   |
| Broker Non-Votes |   |             | —    |   |

ITEM 5.  OTHER INFORMATION 

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ITEM 6.  EXHIBITS 

|           |   |                |   |                                                                                                                                                    | Incorporated by Reference |   |    |   |
|----------------|--------|---------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------|---------|--------|
| Exhibit Number |   | Exhibit Description |   | Form                                                                                                                                                    |                      |   | Exhibit |   | Filing Date |   | Filed Herewith |   |
|           | 3.01   |                |   | Restated Certificate of Incorporation of URS Corporation, as filed with the Secretary of State of Delaware on September 9, 2008.                        |                      | 8-K    |    |   |  3.01 |   | 9/11/2008 |   |   |   |
|           | 3.02   |                |   | By-laws of URS Corporation as amended and restated on September 5, 2008.                                                                                |                      | 8-K    |    |   |  3.02 |   | 9/11/2008 |   |   |   |
|           | 10.3   |                |   | Description of URS Corporation tax gross-up policy and modification of tax gross-up arrangements with Messrs. Koffel and Zarges.                        |                      | 8-K    |    |   | * |   | 4/29/2009 |   | ** |   |
|           | 31.1   |                |   | Certification of URS Corporation’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                             |                      |   |    |   |   |   |   |   |   |   | X |   |
|           | 31.2   |                |   | Certification of URS Corporation’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                             |                      |   |    |   |   |   |   |   |   |   | X |   |
|           | 32     |                |   | Certification of URS Corporation’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |                      |   |    |   |   |   |   |   |   |   | X*** |   |

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

| * | Set forth in Item 5.02. |
|---|-------------------------|

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

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

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

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| Exhibit No. |   |  Description |
|-------------|--------|-------------------|
|        | 31.1   |              |   | Certification of URS Corporation’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|        | 31.2   |              |   | Certification of URS Corporation’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|        | 32     |              |   | Certification of URS Corporation’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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