----

|                |   |                            |
|---------------------|--------|---------------------------------|
| Bob Gomes, P.Eng.   |   | Dan Lefaivre, CMA               |
| President & CEO |   | Senior Vice President & CFO |
| February 24, 2011   |   | February 24, 2011               |

----

----

----

|                                                               |   |   |   |    | Consolidated Balance Sheets |   |   |        |   |    |        |
|--------------------------------------------------------------------|--------|--------|--------|---------|-----------------------------|--------|--------|-------------|--------|---------|-------------|
|                                                               |   |   |   |    |                        |   |   | December 31 |   |    | December 31 |   |
|                                                               |   |   |   |    |                        |   |   | 2010        |   |    | 2009        |   |
| (In thousands of Canadian dollars)                                 |   |   | $      |    |                        | $      |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |
| ASSETS (note 8)                                                    |   |   |   |    |                        |   |   |        |   |    |        |   |
| Current                                                            |   |   |   |    |                        |   |   |        |   |    |        |   |
| Cash and cash equivalents                                          |   |   |   | 62,731  |                        |   |   | 14,690      |   |
| Accounts receivable, net of allowance for doubtful accounts of     |   |   |   |    |                        |   |   |        |
|     $8,033 (2009 – $9,395)                    |   |   |   | 290,388 |                        |   |   | 253,205     |   |
| Costs and estimated earnings in excess of billings                 |   |   |   | 103,204 |                        |   |   | 95,794      |   |
| Income taxes recoverable                                           |   |   |   |    |                        |   |   |        |   | 12,313  |        |   |   | 12,144 |   |
| Prepaid expenses                                                   |   |   |   |    |                        |   |   |        |   | 11,068  |        |   |   | 11,352 |   |
| Future income tax assets(note 18)                                  |   |   |   | 16,059  |                        |   |   | 15,518      |   |
| Other assets (note 6)                                              |   |   |   |    |                        |   |   |        |   | 8,750   |        |   |   | 6,550 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |
| Total current assets                                               |   |   |   |    |                        |   |   |        |   | 504,513 |        |   |   | 409,253 |   |
| Property and equipment(note 3)                                     |   |   |   | 113,996 |                        |   |   | 108,256     |   |
| Goodwill (note 4)                                                  |   |   |   |    |                        |   |   |        |   | 551,446 |        |   |   | 468,814 |   |
| Intangible assets (note 5)                                         |   |   |   |    |                        |   |   |        |   | 73,370  |        |   |   | 64,155 |   |
| Future income tax assets(note 18)                                  |   |   |   | 21,396  |                        |   |   | 23,940      |   |
| Other assets (note 6)                                              |   |   |   |    |                        |   |   |        |   | 58,787  |        |   |   | 49,127 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    | 1,323,508   |   |   |   | 1,123,545 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                               |   |   |   |    |                        |   |   |        |   |
| Current                                                            |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |
| Accounts payable and accrued liabilities (note 7)                  |   |   |   | 192,106 |                        |   |   | 167,175     |   |
| Billings in excess of costs and estimated earnings                 |   |   |   | 58,071  |                        |   |   | 52,007      |   |
| Income taxes payable                                               |   |   |   |    |                        |   |   |        |   | 3,397   |        |   |   | - |   |
| Current portion of long-term debt (note 8)                         |   |   |   | 47,265  |                        |   |   | 35,428      |   |
| Future income tax liabilities (note 18)                            |   |   |   | 15,843  |                        |   |   | 15,643      |   |
| Other liabilities (note 9)                                         |   |   |   |    |                        |   |   |        |   | 14,660  |        |   |   | 13,558 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |
| Total current liabilities                                          |   |   |   | 331,342 |                        |   |   | 283,811     |   |
| Long-term debt (note 8)                                            |   |   |   |    |                        |   |   |        |   | 269,294 |        |   |   | 198,769 |   |
| Future income tax liabilities (note 18)                            |   |   |   | 30,749  |                        |   |   | 29,536      |   |
| Other liabilities (note 9)                                         |   |   |   |    |                        |   |   |        |   | 66,545  |        |   |   | 63,849 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    | 697,930     |   |   |   | 575,965 |   |
|                                                               |   |   |   |    |                        |   |   |        |   |
| Non-controlling interest in subsidiaries (note 10)                 |   |   |   | 103     |                        |   |   | 186         |   |
|                                                               |   |   |   |    |                        |   |   |        |
| Commitments, contingencies, and guarantees(notes 2, 8, 11, and 13) |   |   |   |    |                        |   |   |        |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |
| Shareholders' equity                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |
| Share capital (note 14)                                            |   |   |   |    |                        |   |   |        |   | 225,158 |        |   |   | 221,983 |   |
| Contributed surplus (note 14)                                      |   |   |   | 13,340  |                        |   |   | 12,606      |   |
| Retained earnings                                                  |   |   |   |    |                        |   |   |        |   | 454,301 |        |   |   | 364,569 |   |
| Accumulated other comprehensive loss(note 17)                      |   |   |   | (67,324 | )                           |   |   | (51,764     | )      |
|                                                               |   |   |   |    |                        |   |   |        |   |
| Total shareholders' equity                                         |   |   |   | 625,475 |                        |   |   | 547,394     |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    |        |   |   |   |   |   |
|                                                               |   |   |   |    |                        |   |   |        |   |    | 1,323,508   |   |   |   | 1,123,545 |   |

| See accompanying notes                |   |   |   |     |   |   |   |
|--------------------------------------------|--------|--------|--------|----------|--------|--------|--------|
|  On behalf of the Board of Directors: |   |   |   |     |   |   |
|                                       |   |   |   |     |   |   |   |   |
|  Director                             |   |   |   | Director |   |   |   |   |

----

| Consolidated Statements ofIncome                        |
|--------------------------------------------------------------|
| Years ended December 31                                      |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| (In thousands of Canadian dollars, except per share amounts) |   | $ |   |   | $ |   |   | $ |   |
|                                                         |   |   |   |   |   |   |   |   |   |
| INCOME                                                       |   |   |   |   |   |   |   |   |   |
| Gross revenue                                                |   |   | 1,513,062 |   |   |   | 1,519,865 |   |   |   | 1,351,951 |   |
| Less subconsultant and other direct expenses                 |   |   | 287,022 |   |   |   | 276,923 |   |   |   | 221,827 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenue                                                  |   |   | 1,226,040 |   |   |   | 1,242,942 |   |   |   | 1,130,124 |   |
| Direct payroll costs                                         |   |   | 537,704 |   |   |   | 543,640 |   |   |   | 500,789 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                                 |   |   | 688,336 |   |   |   | 699,302 |   |   |   | 629,335 |   |
| Administrative and marketing expenses (notes 14 and 24)      |   |   | 510,934 |   |   |   | 519,147 |   |   |   | 466,187 |   |
| Depreciation of property and equipment                       |   |   | 24,402 |   |   |   | 24,547 |   |   |   | 21,820 |   |
| Amortization of intangible assets                            |   |   | 17,599 |   |   |   | 19,820 |   |   |   | 14,264 |   |
| Impairment of goodwill and intangible assets (notes 4 and 5) |   |   | 1,772 |   |   |   | 35,000 |   |   |   | 58,369 |   |
| Net interest expense (note 8)                                |   |   | 9,000 |   |   |   | 11,379 |   |   |   | 7,477 |   |
| Share of income from associated companies                    |   |   | (2,209 | ) |   |   | (3,690 | ) |   |   | (160 | ) |
| Gain on sale of equity investments (note 6)                  |   |   | (7,183 | ) |   |   | - |   |   |   | - |   |
| Foreign exchange losses (gains)                              |   |   | 1,355 |   |   |   | 2,273 |   |   |   | (2,033 | ) |
| Other income                                                 |   |   | (850 | ) |   |   | (840 | ) |   |   | (1,088 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                   |   |   | 133,516 |   |   |   | 91,666 |   |   |   | 64,499 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes (note 18)                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                      |   |   | 42,429 |   |   |   | 41,599 |   |   |   | 41,213 |   |
| Future                                                       |   |   | (2,508 | ) |   |   | (5,873 | ) |   |   | (5,731 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Total income taxes                                           |   |   | 39,921 |   |   |   | 35,726 |   |   |   | 35,482 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year                                      |   |   | 93,595 |   |   |   | 55,940 |   |   |   | 29,017 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share (note 19)                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |   | 2.05 |   |   |   | 1.23 |   |   |   | 0.64 |   |
| Diluted                                                      |   |   | 2.04 |   |   |   | 1.22 |   |   |   | 0.63 |   |
|   See accompanying notes                           |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Consolidated Statements of Shareholders' Equityand Comprehensive Income  |   |
|--------------------------------------------------------------------------|--------|
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Comprehensive |   |   |   |   |
|                                                                     |   | Shares |   |   | Share |   |   | Contributed |   |   | Deferred |   |   |   |   |   | Income (AOCI) |   |   |   |   |
|                                                                     |   | Outstanding |   |   | Capital |   |   | Surplus |   |   | Stock |   |   | Retained |   |   | (Loss) (AOCL) |   |   |   |   |
|                                                                     |   | (note 14) |   |   | (note 14) |   |   |   (note 14) |   |  Compensation |   |   | Earnings |   |   | (note 17) |   |   | Total |   |
| (In thousands of Canadian dollars, except shares outstanding)            |   | # |   |   |  $ |   |   |  $ |   |   |  $ |   |   |  $ |   |   |  $ |   |   |  $ |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                               |   |   | 45,698,143 |   |   |   | 218,790 |   |   |   | 6,266 |   |   |   | (110 | ) |   |   | 286,780 |   |   |   | (69,028 | ) |   |   | 442,698 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 29,017 |   |   |   |   |   |   |   | 29,017 |   |
| Currency translation adjustments                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 76,923 |   |   |   | 76,923 |   |
| Unrealized losses on cash flow hedge                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,974 | ) |   |   | (2,974 | ) |
| Unrealized losses on financial assets                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3,641 | ) |   |   | (3,641 | ) |
| Realized gains on financial assets transferred to net income        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (149 | ) |   |   | (149 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 29,017 |   |   |   | 70,159 |   |   |   | 99,176 |   |
| Share options exercised for cash                                         |   |   | 97,860 |   |   |   | 1,199 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,199 |   |
| Stock-based compensation expense                                         |   |   |   |   |   |   |   |   |   |   | 4,887 |   |   |   | 110 |   |   |   |   |   |   |   |   |   |   |   | 4,997 |   |
| Shares repurchased under normal course issuer bid                        |   |   | (351,400 | ) |   |   | (1,688 | ) |   |   | (58 | ) |   |   |   |   |   |   | (7,168 | ) |   |   |   |   |   |   | (8,914 | ) |
| Reclassification of fair value of share options previously expensed |   |   |   |   |   |   | 423 |   |   |   | (423 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Shares issued on vesting of restricted shares                            |   |   | 3,520 |   |   |   | 33 |   |   |   | (214 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (181 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                               |   |   | 45,448,123 |   |   |   | 218,757 |   |   |   | 10,458 |   |   |   | - |   |   |   | 308,629 |   |   |   | 1,131 |   |   |   | 538,975 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained earnings and AOCI                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 309,760 |   |   |   |   |   |

| Balance, December 31, 2008                                               |   |   | 45,448,123 |   |   |   | 218,757 |   |   |   | 10,458 |   |   |   | -      |   |   |   | 308,629 |   |   |   | 1,131   |   |   |   | 538,975 |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Comprehensive income:                                                    |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Net income                                                               |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 55,940  |   |   |   |    |   |   |   | 55,940  |   |
| Currency translation adjustments                                         |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   | (57,248 | )      |   |   | (57,248 | )      |
| Unrealized gains on cash flow hedge                                      |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    | 1,443  |   |   |    | 1,443  |   |
| Unrealized gains on financial assets                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    | 2,691  |   |   |    | 2,691  |   |
| Realized losses on financial assets transferred to net income       |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   | 219     |   |   |   | 219     |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Total comprehensive income                                               |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 55,940  |   |   |   | (52,895 | )      |   |   | 3,045   |   |
| Share options exercised for cash                                         |   |   | 268,697    |   |   |   | 2,346   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   | 2,346   |   |
| Stock-based compensation expense                                         |   |   |       |   |   |   |    |   |   |   | 3,028  |   |   |   | -      |   |   |   |    |   |   |   |    |   |   |   | 3,028   |   |
| Reclassification of fair value of share options previously expensed |   |   |       |   |   |   | 880     |   |   |   | (880   | )      |   |   |   |   |   |   |    |   |   |   |    |   |   |   | -       |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Balance, December 31, 2009                                               |   |   | 45,716,820 |   |   |   | 221,983 |   |   |   | 12,606 |   |   |   | -      |   |   |   | 364,569 |   |   |   | (51,764 | )      |   |   | 547,394 |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Retained earnings and AOCL                                               |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   | 312,805 |   |   |   |    |   |

| Balance, December 31, 2009                                               |   |   | 45,716,820 |   |   |   | 221,983 |   |   |   | 12,606 |    |   |   | -      |   |   |   | 364,569 |   |   |   | (51,764 | )      |   |   | 547,394 |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Comprehensive income:                                                    |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Net income                                                               |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   | 93,595  |   |   |   |    |   |   |   | 93,595  |   |
| Currency translation adjustments                                         |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   | (18,981 | )      |   |   | (18,981 | )      |
| Unrealized gains on cash flow hedge                                      |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    | 1,531  |   |   |    | 1,531  |   |
| Unrealized gains on financial assets                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    | 1,624  |   |   |    | 1,624  |   |
| Realized losses on financial assets transferred to net income       |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   | 266     |   |   |   | 266     |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Total comprehensive income                                               |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   | 93,595  |   |   |   | (15,560 | )      |   |   | 78,035  |   |
| Share options exercised for cash                                         |   |   | 249,800    |   |   |   | 3,044   |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   | 3,044   |   |
| Stock-based compensation expense                                         |   |   | -          |   |   |   | -       |   |   |   | 1,889  |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   | 1,889   |   |
| Shares repurchased under normal    course issuer bid           |   |   | (198,300   | )      |   |   | (965    | )      |   |   | (59    | )       |   |   |   |   |   |   | (3,863  | )      |   |   |    |   |   |   | (4,887  | )      |
| Reclassification of fair value of share options previously expensed |   |   |       |   |   |   | 1,096   |   |   |   | (1,096 | )  |   |   |   |   |   |   |    |   |   |   |    |   |   |   | -       |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Balance, December 31, 2010                                               |   |   | 45,768,320 |   |   |   | 225,158 |   |   |   | 13,340 |    |   |   | -      |   |   |   | 454,301 |   |   |   | (67,324 | )      |   |   | 625,475 |   |
|                                                                     |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Retained earnings and AOCL                                               |   |   |       |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |    |   |   |   | 386,977 |   |   |   |    |   |

----

| Consolidated Statements of Cash Flows                                |   |
|----------------------------------------------------------------------|--------|
| Years ended December 31                                              |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| (In thousands of Canadian dollars)                                   |   |   | $ |   |   | $ |   |   | $ |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES                       |   |   |   |   |   |   |   |   |   |
| Cash receipts from clients                                           |   |   |   | 1,499,392 |   |   |   | 1,564,415 |   |   |   | 1,222,566 |   |
| Cash paid to suppliers                                               |   |   |   | (510,410 | ) |   |   | (545,671 | ) |   |   | (276,862 | ) |
| Cash paid to employees                                               |   |   |   | (821,360 | ) |   |   | (852,459 | ) |   |   | (737,931 | ) |
| Dividends from equity investments                                    |   |   |   | 2,852 |   |   |   | 1,283 |   |   |   | 150 |   |
| Interest received                                                    |   |   |   | 3,111 |   |   |   | 2,192 |   |   |   | 1,857 |   |
| Interest paid                                                        |   |   |   | (16,775 | ) |   |   | (12,383 | ) |   |   | (6,597 | ) |
| Income taxes paid                                                    |   |   |   | (51,548 | ) |   |   | (65,731 | ) |   |   | (50,037 | ) |
| Income taxes recovered                                               |   |   |   | 9,522 |   |   |   | 8,331 |   |   |   | 6,884 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities (note 20)                       |   |   | 114,784 |   |   |   | 99,977 |   |   |   | 160,030 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Business acquisitions, net of cash acquired (note 2)                 |   |   | (66,989 | ) |   |   | (73,078 | ) |   |   | (92,087 | ) |
| Cash held in escrow (note 2)                                         |   |   |   | - |   |   |   | - |   |   |   | (6,178 | ) |
| Decrease (increase) in investments held for self-insured liabilities |   |   | (7,301 | ) |   |   | (11,040 | )  |   |   | 5,820 |   |
| Proceeds on disposition of investments                               |   |   |   | 1,283 |   |   |   | - |   |   |   | 9 |   |
| Purchase of intangible assets                                        |   |   |   | (3,262 | ) |   |   | (3,062 | ) |   |   | (2,846 | ) |
| Purchase of property and equipment                                   |   |   |   | (25,725 | ) |   |   | (17,366 | ) |   |   | (32,791 | ) |
| Proceeds on disposition of property and equipment                    |   |   | 412 |   |   |   | 1,331 |   |   |   | 410 |   |
| Proceeds on sale of equity investments (note 6)                      |   |   | 9,980 |   |   |   | - |   |   |   | - |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows used in investing activities                              |   |   | (91,602 | ) |   |   | (103,215 | ) |   |   | (127,663 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Repayment of long-term debt                                          |   |   |   | (179,406 | ) |   |   | (147,902 | ) |   |   | (164,602 | ) |
| Proceeds from long-term borrowings                                   |   |   |   | 216,948 |   |   |   | 68,771 |   |   |   | 228,337 |   |
| Repayment of acquired bank indebtedness (note 2)                     |   |   |   | (3,895 | ) |   |   | (4,596 | ) |   |   | (1,788 | ) |
| Repayment of capital lease obligations                               |   |   |   | (5,356 | ) |   |   | (2,759 | ) |   |   | (438 | ) |
| Repurchase of shares for cancellation (note 14)                      |   |   | (4,887 | ) |   |   | - |   |   |   | (8,914 | ) |
| Proceeds from issue of share capital (note 14)                       |   |   | 3,044 |   |   |   | 2,346 |   |   |   | 1,199 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from (used in) financing activities                       |   |   | 26,448 |   |   |   | (84,140 | ) |   |   | 53,794 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange gain (loss) on cash held in foreign currency        |   |   |   | (1,589 | ) |   |   | (1,911 | ) |   |   | 3,643 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                 |   |   | 48,041 |   |   |   | (89,289 | ) |   |   | 89,804 |   |
| Cash and cash equivalents, beginning of the year                     |   |   | 14,690 |   |   |   | 103,979 |   |   |   | 14,175 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of the year                           |   |   | 62,731 |   |   |   | 14,690 |   |   |   | 103,979 |   |
|   See accompanying notes                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| Engineering equipment  | 20     | –30% | declining balance                                     |
|------------------------|--------|------------|-------------------------------------------------------|
| Office equipment       | 20     | –30% | declining balance                                     |
| Automotive equipment   | 30     | %          | declining balance                                     |
| Leasehold improvements |   |       | straight-line over term of lease to a maximum of 15   |
|                   |   |       |    years or the improvement's economic life |
| Buildings              | 4      | –5%  | declining balance                                     |
|                   |   |       |                                                  |

----

----

----

----

----

----

|                                           |   | Total  |    |   | Total  |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                           |   | 2010   |    |   | 2009   |   |
| (In thousands of Canadian dollars)             |   | $      |    |   | $      |   |
|                                           |   |   |    |   |   |   |   |   |
| Cash consideration                             |   |   | 79,256  |   |   |   | 73,078 |   |
| Notes payable                                  |   |   | 34,635  |   |   |   | 71,701 |   |
|                                           |   |   |    |   |   |   |   |   |
| Purchase price                                 |   |   | 113,891 |   |   |   | 144,779 |   |
|                                           |   |   |    |   |   |   |   |   |
| Assets and liabilities acquired at fair values |   |   |    |   |   |   |   |   |
| Cash acquired                                  |   |   | 12,267  |   |   |   | - |   |
| Bank indebtedness assumed                      |   |   | (3,895  | )      |   |   | (4,596 | ) |
| Non-cash working capital                       |   |   | (12,911 | )      |   |   | 25,917 |   |
| Property and equipment                         |   |   | 13,660  |   |   |   | 16,606 |   |
| Investments                                    |   |   | 1,493   |   |   |   | 3,431 |   |
| Goodwill                                       |   |   | 99,629  |   |   |   | 104,702 |   |
| Other long-term assets                         |   |   | 5,806   |   |   |   | - |   |
| Intangible assets                              |   |   |    |   |   |   |   |   |
| Client relationships                           |   |   | 13,119  |   |   |   | 12,997 |   |
| Contract backlog                               |   |   | 5,289   |   |   |   | 10,756 |   |
| Other                                          |   |   | 195     |   |   |   | 3,553 |   |
| Other long-term liabilities                    |   |   | 131     |   |   |   | (2,706 | ) |
| Non-controlling interest in subsidiaries       |   |   | 83      |   |   |   | (186 | ) |
| Long-term debt                                 |   |   | (15,883 | )      |   |   | (15,218 | ) |
| Future income taxes                            |   |   | (5,010  | )      |   |   | (6,036 | ) |
| Capital lease obligations                      |   |   | (82     | )      |   |   | (4,441 | ) |
|                                           |   |   |    |   |   |   |   |   |
| Net assets acquired                            |   |   | 113,891 |   |   |   | 144,779 |   |

----

| 3 .    Property and Equipment |   |   |          |   |         |       |          |   |   |   |         |   |
|----------------------------------------------|--------|--------|---------------|--------|--------------|------------|---------------|--------|--------|--------|--------------|--------|
|                                         |   | 2010   |          |   |         |  2009 |          |
|                                         |   |   |          |   | Accumulated  |       |          |   |   |   | Accumulated  |   |
|                                         |   | Cost   |          |   | Depreciation |       |          | Cost   |   |   | Depreciation |   |
| (In thousands of Canadian dollars)           |   | $      |          |   | $            |       |          | $      |   |   | $            |   |
|                                         |   |   |          |   |         |       |          |   |   |   |         |   |   |   |   |   |
| Engineering equipment                        |   |   | 84,690        |   |         |       | 49,503        |   |   |   | 75,541       |   |   |   | 44,307 |   |
| Office equipment                             |   |   | 44,644        |   |         |       | 25,631        |   |   |   | 42,270       |   |   |   | 22,861 |   |
| Automotive equipment                         |   |   | 7,955         |   |         |       | 5,508         |   |   |   | 7,123        |   |   |   | 4,850 |   |
| Leasehold improvements                       |   |   | 69,327        |   |         |       | 23,449        |   |   |   | 58,856       |   |   |   | 16,277 |   |
| Assets under capital leases                  |   |   | 3,044         |   |         |       | 1,271         |   |   |   | 2,295        |   |   |   | 935 |   |
| Buildings                                    |   |   | 9,451         |   |         |       | 1,715         |   |   |   | 11,046       |   |   |   | 1,754 |   |
| Land                                         |   |   | 1,962         |   |         |       | -             |   |   |   | 2,109        |   |   |   | - |   |
|                                         |   |   |          |   |         |       |          |   |   |   |         |   |   |   |   |   |
|                                         |   |   | 221,073       |   |         |       | 107,077       |   |   |   | 199,240      |   |   |   | 90,984 |   |
|                                         |   |   |          |   |         |       |          |   |   |   |         |   |   |   |   |   |
| Net book value                               |   |   |  113,996 |   |         |       |  108,256 |   |

| 4 .    Goodwill     |   |   |    |   |   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|
|                               |   | 2010   |    |   | 2009   |   |
| (In thousands of Canadian dollars) |   | $      |    |   | $      |   |
|                               |   |   |    |   |   |   |   |   |
| Goodwill, beginning of the year    |   |   | 468,814 |   |   |   | 446,818 |   |
| Current year acquisitions          |   |   | 100,505 |   |   |   | 108,713 |   |
| Impairment                         |   |   | -       |   |   |   | (35,000 | ) |
| Contingent consideration payments  |   |   | 2,459   |   |   |   | 2,324 |   |
| Purchase price adjustments         |   |   | (3,335  | )      |   |   | (6,335 | ) |
| Impact of foreign exchange         |   |   | (16,997 | )      |   |   | (47,706 | ) |
|                               |   |   |    |   |   |   |   |   |
| Goodwill, end of the year          |   |   | 551,446 |   |   |   | 468,814 |   |

----

----

| 5 .    Intangible Assets |   |       |    |   |         |   |   |          |   |   |         |   |   |         |   |
|-----------------------------------------|--------|------------|---------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                    |   |  2010 |    |   |         |   |   | 2009          |   |
|                                    |   | Gross      |    |   |         |   |   |          |   |   | Gross        |   |   |         |   |
|                                    |   | Carrying   |    |   | Accumulated  |   |   | Impairment of |   |   | Carrying     |   |   | Accumulated  |   |
|                                    |   | Amount     |    |   | Amortization |   |   | Assets        |   |   | Amount       |   |   | Amortization |   |
| (In thousands of Canadian dollars)      |   | $          |    |   | $            |   |   | $             |   |   | $            |   |   | $            |   |
|                                    |   |       |    |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Client relationships                    |   |       | 72,102  |   |         |   | 20,188 |          |   |   | 703          |   |   |         | 61,391 |   |   |   | 15,676 |   |
| Contract backlog                        |   |       | 10,588  |   |         |   | 5,814  |          |   |   | -            |   |   |         | 11,048 |   |   |   | 5,349 |   |
| Software                                |   |       | 21,938  |   |         |   | 6,362  |          |   |   | -            |   |   |         | 13,774 |   |   |   | 4,389 |   |
| Other                                   |   |       | 4,963   |   |         |   | 2,085  |          |   |   | 1,069        |   |   |         | 4,764  |   |   |   | 1,408 |   |
|                                    |   |       |    |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|                                    |   |       | 109,591 |   |         |   | 34,449 |          |   |   | 1,772        |   |   |         | 90,977 |   |   |   | 26,822 |   |
|                                    |   |       |    |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Carrying amount                         |   |       | 73,370  |   |         |   |   |          |   |   |  64,155 |   |

| (In thousands of Canadian dollars) |       |   |   | $      |   |
|------------------------------------|------------|--------|--------|--------|--------|
|                               |       |   |   |   |   |
|                               | 2011       |   |   | 16,616 |   |
|                               | 2012       |   |   | 10,019 |   |
|                               | 2013       |   |   | 8,579  |   |
|                               | 2014       |   |   | 7,931  |   |
|                               | 2015       |   |   | 5,715  |   |
|                               | Thereafter |   |   | 24,510 |   |
|                               |       |   |   |   |   |
|                               |       |   |   | 73,370 |   |

----

| 6 .    Other Assets       |   |    2010 |   |   | 2009   |   |
|-----------------------------------------------|--------|-------------------|--------|--------|--------|--------|
| (In thousands of Canadian dollars)            |   | $                 |   |   | $      |   |
|                                          |   |              |   |   |   |   |   |   |
| Investments held for self-insured liabilities |   |              | 46,578 |   |   |   | 38,418 |   |
| Investments in associated companies           |   |              | 2,831  |   |   |   | 6,631 |   |
| Investments – other                     |   |              | 4,489  |   |   |   | 713 |   |
| Holdbacks on long-term contracts              |   |              | 5,966  |   |   |   | 3,411 |   |
| Assets held for sale                          |   |              | 3,385  |   |   |   | 845 |   |
| Other                                         |   |              | 4,288  |   |   |   | 5,659 |   |
|                                          |   |              |   |   |   |   |   |   |
|                                          |   |              | 67,537 |   |   |   | 55,677 |   |
| Less current portion                          |   |              | 8,750  |   |   |   | 6,550 |   |
|                                          |   |              |   |   |   |   |   |   |
|                                          |   |              | 58,787 |   |   |   | 49,127 |   |

----

| 7.  |   | Accounts Payable and Accrued Liabilities  |          |          |
|----------|--------|------------------------------------------------|---------------|---------------|
|     |   |                                           | 2010          | 2009          |
|     |   | (In thousands of Canadian dollars)             | $             | $             |
|     |   |                                           |          |          |
|     |   | Trade accounts payable                         | 62,584        | 63,204        |
|     |   | Employee and payroll liabilities               | 92,842        | 77,582        |
|     |   | Accrued liabilities                            | 36,680        | 26,389        |
|     |   |                                           |          |          |
|     |   |                                           | 192,106       | 167,175       |
|     |   |                                           |          |          |
|     |   |                                           |          |          |
| 8.       |   | Long-Term Debt                                 |          |          |
|     |   |                                           | 2010          | 2009          |
|     |   | (In thousands of Canadian dollars)             | $             | $             |
|     |   |                                           |          |          |
|     |   | Non-interest-bearing note payable              | 195           | 177           |
|     |   | Other notes payable                            | 86,432        | 91,830        |
|     |   | Bank loan                                      | 220,217       | 134,600       |
|     |   | Capital lease obligations                      | 9,715         | 7,590         |
|     |   |                                           |          |          |
|     |   |                                           |  316,559 |  234,197 |
|     |   | Less current portion                           | 47,265        | 35,428        |
|     |   |                                           |          |          |
|     |   |                                           | 269,294       | 198,769       |

----

| (In thousands of Canadian dollars)                                                                                     |   |   |   |   |       | $       |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------|---------|--------|
|                                                                                                                   |   |   |   |   |       |    |   |
|                                                                                                                   |   |   |   |   | 2011       | 47,265  |   |
|                                                                                                                   |   |   |   |   | 2012       | 39,756  |   |
|                                                                                                                   |   |   |   |   | 2013       | 229,034 |   |
|                                                                                                                   |   |   |   |   | 2014       | 54      |   |
|                                                                                                                   |   |   |   |   | 2015       | 27      |   |
|                                                                                                                   |   |   |   |   | Thereafter | 423     |   |
|                                                                                                                   |   |   |   |   |       |    |   |
|                                                                                                                   |   |   |   |   |       | 316,559 |   |
|  The interest incurred on long-term debt in 2010was $9,457,000 (2009 –$11,290,000;2008 – $7,784,000). |
| 9 .    Other Liabilities   |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                      |   |   |   |   | 2010   | 2009   |   |
| (In thousands of Canadian dollars)        |   |   |   |   | $      | $      |   |
|                                      |   |   |   |   |   |   |   |
| Provision for self-insured liabilities    |   |   |   |   | 33,372 | 31,284 |   |
| Deferred gain on sale leaseback           |   |   |   |   | 4,441  | 4,877  |   |
| Lease inducement benefits                 |   |   |   |   | 23,434 | 21,764 |   |
| Liabilities on lease exit activities      |   |   |   |   | 3,376  | 6,171  |   |
| Liability for uncertain tax positions     |   |   |   |   | 1,473  | 1,529  |   |
| Interest on other notes payable           |   |   |   |   | 5,746  | 4,622  |   |
| Derivative financial instruments(note 12) |   |   |   |   | -      | 2,427  |   |
| Other                                     |   |   |   |   | 9,363  | 4,733  |   |
|                                      |   |   |   |   |   |   |   |
|                                      |   |   |   |   | 81,205 | 77,407 |   |
| Less current portion                      |   |   |   |   | 14,660 | 13,558 |   |
|                                      |   |   |   |   |   |   |   |
|                                      |   |   |   |   | 66,545 | 63,849 |   |

----

|                               | 2010   |   | 2009   |   |
|------------------------------------|--------|--------|--------|--------|
| (In thousands of Canadian dollars) | $      |   | $      |   |
|                               |   |   |   |   |
| Provision, beginning of the year   | 31,284 |   | 30,265 |   |
| Current year provision             | 9,405  |   | 9,443  |   |
| Payment for claims settlement      | (6,294 | )      | (4,761 | )      |
| Impact of foreign exchange         | (1,023 | )      | (3,663 | )      |
|                               |   |   |   |   |
| Provision, end of the year         | 33,372 |   | 31,284 |   |

|                                     | 2010   |   | 2009   |   |
|------------------------------------------|--------|--------|--------|--------|
| (In thousands of Canadian dollars)       | $      |   | $      |   |
|                                     |   |   |   |   |
| Liability, beginning of the year         | 6,171  |   | 4,081  |   |
| Current year provision:                  |   |   |   |   |
| Established for existing operations      | 914    |   | 3,728  |   |
| Resulting from acquisitions              | 878    |   | 1,677  |   |
| Costs paid or otherwise settled          | (3,415 | )      | (3,755 | )      |
| Adjustments to purchase price allocation | (1,009 | )      | 1,029  |   |
| Impact of foreign exchange               | (163   | )      | (589   | )      |
|                                     |   |   |   |   |
| Liability, end of the year               | 3,376  |   | 6,171  |   |

----

| (In thousands of Canadian dollars)                                                                                                                                                                                                                                                                                                   |       |   |   | $       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                 |       |   |   |    |   |
|                                                                                                                                                                                                                                                                                                                                 | 2011       |   |   | 81,775  |   |
|                                                                                                                                                                                                                                                                                                                                 | 2012       |   |   | 73,788  |   |
|                                                                                                                                                                                                                                                                                                                                 | 2013       |   |   | 64,115  |   |
|                                                                                                                                                                                                                                                                                                                                 | 2014       |   |   | 53,141  |   |
|                                                                                                                                                                                                                                                                                                                                 | 2015       |   |   | 46,872  |   |
|                                                                                                                                                                                                                                                                                                                                 | Thereafter |   |   | 148,396 |   |
|                                                                                                                                                                                                                                                                                                                                 |       |   |   |    |   |
|                                                                                                                                                                                                                                                                                                                                 |       |   |   | 468,087 |   |
|  The premises rental expense for the year ended December 31,2010, was$63,255,000 (2009– $64,301,000; 2008 – $48,602,000). Sublease rental income for the year ended December 31, 2010, was $3,403,000 (2009 – $2,950,000; 2008 – $2,159,000). Commitments for future sublease revenue total $7,615,000. |

----

| 14 .  Share Capital |                                                                                      |
|--------------------------|-------------------------------------------------------------------------------------------|
|                     |                                                                                      |
| Authorized               |                                                                                      |
|                     |                                                                                      |
| Unlimited                | Common shares, with no par value                                                          |
| Unlimited                | Preferred shares issuable in series, with attributes designated by the Board of Directors |

----

|               |   | 2010   |      |   |     | 2009   |   |   |   | 2008   |      |   |
|--------------------|--------|--------|-----------|--------|----------|--------|--------|--------|--------|--------|-----------|--------|
|               |   |   |      |   | Weighted |   |   |   |   |   | Weighted  |   |   |   |   |   | Weighted |   |
|               |   |   |      |   | Average  |   |   |   |   |   | Average   |   |   |   |   |   | Average |   |
|               |   |   |      |   | Exercise |   |   |   |   |   | Exercise  |   |   |   |   |   | Exercise |   |
|               |   | Shares |      |   | Price    |   |   | Shares |   |   | Price     |   |   | Shares |   |   | Price |   |
|               |   | #      |      |   | $        |   |   | #      |   |   | $         |   |   |   | # |   |   | $ |   |
| Share options,     |   |   |      |   |     |   |   |   |   |   |      |   |   |   |   |   |   |   |   |
| beginning of the   |   |   |      |   |     |   |   |   |   |   |      |   |   |   |   |   |   |   |   |
| year               |   |   | 1,752,298 |   |     |   | 22.65  |   |   |   | 2,061,828 |   |   |   | 20.97 |   |   |   | 1,751,022 |   |   |   | 18.32 |   |
| Granted            |   |   | -         |   |     |   | -      |   |   |   | -         |   |   |   | - |   |   |   | 480,000 |   |   |   | 29.40 |   |
| Exercised          |   |   | (249,800  | )      |     |   | 12.19  |   |   |   | (268,697  | )      |   |   | 8.73 |   |   |   | (97,860 | ) |   |   | 12.25 |   |
| Forfeited          |   |   | (10,838   | )      |     |   | 29.59  |   |   |   | (30,837   | )      |   |   | 29.34 |   |   |   | (58,502 | ) |   |   | 24.86 |   |
| Cancelled          |   |   | (10,829   | )      |     |   | 29.77  |   |   |   | (9,996    | )      |   |   | 30.21 |   |   |   | (12,832 | ) |   |   | 22.87 |   |
|               |   |   |      |   |     |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share options, end |   |   |      |   |     |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of the year        |   |   | 1,480,831 |   |     |   | 24.31  |   |   |   | 1,752,298 |   |   |   | 22.65 |   |   |   | 2,061,828 |   |   |   | 20.97 |   |

----

| The options held by officers and employees at December 31, 2010, were as follows:  |               |   |                |   |
|-----------------------------------------------------------------------------------------|--------------------|--------|---------------------|--------|
|                                                                                    |               |   | Options Outstanding |   |   |   |   |   | Options Exercisable |   |   |   |   |
|                                                                                    |               |   |                |   |   | Weighted |   |   | Weighted |   |   |   |   |   | Weighted |   |   | Weighted |   |
| Range of                                                                                |               |   |                |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |
| Exercise                                                                                |               |   |                |   |   | Remaining |   |   | Exercise |   |   | Shares |   |   | Remaining |   |   | Exercise |   |
| Prices                                                                                  |               |   | Outstanding         |   |   | Contractual |   |   | Price |   |   | Exercisable |   |   | Contractual |   |   | Price |   |
| $                                                                                       |               |   | #                   |   |   | Life in Years |   |   | $ |   |   | # |   |   | Life in Years |   |   | $ |   |
|                                                                                    |               |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    | 10.80– 13.55 |   |                |   | 300,665 |   |   |   | 1.39 |   |   |   | 12.35 |   |   |   | 300,665 |   |   |   | 1.39 |   |   |   | 12.35 |   |
|                                                                                    | 20.37– 20.42 |   |                |   | 323,500 |   |   |   | 2.65 |   |   |   | 20.39 |   |   |   | 323,500 |   |   |   | 2.65 |   |   |   | 20.39 |   |
|                                                                                    | 29.40– 30.61 |   |                |   | 856,666 |   |   |   | 4.14 |   |   |   | 29.99 |   |   |   | 710,732 |   |   |   | 4.04 |   |   |   | 30.11 |   |
|                                                                                    |               |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    | 10.80– 30.61 |   |                |   | 1,480,831 |   |   |   | 3.26 |   |   |   | 24.31 |   |   |   | 1,334,897 |   |   |   | 3.11 |   |   |   | 23.76 |   |

|                                                | 2008   |
|-----------------------------------------------------|--------|
|                                                |   |
| Risk-free interest rate (%)                         | 3.09   |
| Expected hold period to exercise (years)            | 5.5    |
| Volatility in the price of the Company's shares (%) | 29.6   |
| We ighted average fair value per option ($)         | 9.82   |

|                                      | Number of Shares  |   | Weighted Average      |
|-------------------------------------------|-------------------|--------|-----------------------|
|                                      | Subject to Option |   | Grant Date Fair Value |
|                                      | #                 |   | $                     |
|                                      |              |   |                  |
| Non-vested, beginning of the year         | 444,316           |   | 10.08                 |
| Vested                                    | (287,544          | )      | 10.22                 |
| Forfeited                                 | (10,838           | )      | 9.95                  |
|                                      |              |   |                  |
| Non-vested share options, end of the year | 145,934           |   | 9.82                  |

----

| ·   | Cash and cash equivalents are classified as financial assets held for trading and are recorded at fair value, with realized and unrealized gains and losses reported in income. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Accounts receivable are classified as receivables and are initially accounted for at fair value and subsequently adjusted for any allowance for doubtful accounts, with realized gains and losses reported in income. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investments held for self-insured liabilities are classified as financial assets available for sale and are recorded at fair value, with accumulated unrealized gains and losses reported in other comprehensive income until disposed of, at which time the realized gains and losses are recognized in income. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Accounts payable and accrued liabilities, bank indebtedness, and long-term debt are classified as other financial liabilities and are initially recorded at fair value and subsequently recorded at amortized cost using the effective interest rate method, with realized gains and losses reported in income. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Derivative other assets and liabilities are classified as held for trading and are accounted for at fair value, with realized and unrealized gains and losses reported in income unless the derivative qualifies and is designated as an effective cash flow hedge, in which case unrealized gains and losses are recorded in other comprehensive income. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Level 1 inputs are quoted prices in active markets for identical assets or liabilities at the measurement date. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 inputs are observable inputs other than quoted prices included within level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable directly or indirectly. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 inputs are unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions and are not based on observable market data. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          | Carrying        |  Quoted Prices in | Significant            |                   |
|-----------------------------------------------|-----------------|------------------------|------------------------|------------------------|
|                                          | Amount of Asset | Active Markets         | Other                  | Significant            |
|                                          | at December 31, | for Identical          | Observable             | Unobservable           |
|                                          | 2010            | Items (Level 1)        |  Inputs (Level 2) |  Inputs (Level 3) |
| (In thousands of Canadian dollars)            | $               | $                      | $                      | $                      |
|                                          |            |                   |                   |                   |
| Assets:                                       |            |                   |                   |                   |
| Investments held for self-insured liabilities | 46,578          | 46,578                 | -                      | -                      |

|                                          |   | Carrying Amount    |   |   | Quoted Prices in    |   |   |              |   |   |             |   |
|-----------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|--------|-------------------|--------|--------|------------------|--------|
|                                          |   | of Asset/Liability |   |   | Active Markets      |   |   | Significant Other |   |   | Significant      |   |
|                                          |   | at December 31,    |   |   | for Identical Items |   |   | Observable        |   |   | Unobservable     |   |
|                                          |   | 2009               |   |   | (Level 1)           |   |   | Inputs (Level 2)  |   |   | Inputs (Level 3) |   |
| (In thousands of Canadian dollars)            |   | $                  |   |   | $                   |   |   | $                 |   |   | $                |   |
|                                          |   |               |   |   |                |   |   |              |   |   |             |   |
| Assets:                                       |   |               |   |   |                |   |   |              |   |   |             |   |
| Investments held for self-insured liabilities |   |               | 38,418 |   |                |   | 38,418 |              |   |   | -                |   |   |   | - |   |
|                                          |   |               |   |   |                |   |   |              |   |   |             |   |   |   |   |   |
| Liabilities:                                  |   |               |   |   |                |   |   |              |   |   |             |   |   |   |   |   |
| Foreign currency forward contracts            |   |               | 270    |   |                |   | -      |              |   |   | 270              |   |   |   | - |   |
| Interest rate swap                            |   |               | 2,157  |   |                |   | -      |              |   |   | 2,157            |   |   |   | - |   |
|                                          |   |               |   |   |                |   |   |              |   |   |             |   |   |   |   |   |
|                                          |   |               | 2,427  |   |                |   | -      |              |   |   | 2,427            |   |   |   | - |   |

----

| Allowance for doubtful accounts    |   |   |   |   |   |   |    |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                               |   | 2010   |   |   | 2009   |   |    | 2008   |   |
| (In thousands of Canadian dollars) |   | $      |   |   | $      |   |    | $      |   |
|                               |   |   |   |   |   |   |    |   |   |
| Balance, beginning of the year     |   |   | 9,395  |   |   |   | 11,597  |   |   |   | 10,508 |   |
| Provision for doubtful accounts    |   |   | 5,915  |   |   |   | 17,151  |   |   |   | 22,508 |   |
| Deductions                         |   |   | (6,892 | )      |   |   | (17,734 | )      |   |   | (23,702 | ) |
| Impact of foreign exchange         |   |   | (385   | )      |   |   | (1,619  | )      |   |   | 2,283 |   |
|                               |   |   |   |   |   |   |    |   |   |   |   |   |
| Balance, end of the year           |   |   | 8,033  |   |   |   | 9,395   |   |   |   | 11,597 |   |

----

|                                     |   | Total  |    |   | Less Than |   |    | 1–3 Years |   |   | After   |   |
|------------------------------------------|--------|--------|---------|--------|-----------|--------|---------|-----------------|--------|--------|---------|--------|
|                                     |   |   |    |   | 1 Year    |   |    |            |   |   | 3 Years |   |
| (In thousands of Canadian dollars)       |   | $      |    |   | $         |   |    | $               |   |   | $       |   |
|                                     |   |   |    |   |      |   |    |            |   |   |    |   |
| Accounts payable and accrued liabilities |   |   | 192,106 |   |      |   | 192,106 |            |   |   | -       |   |   |   | - |   |
| Long-term debt                           |   |   | 317,315 |   |      |   | 47,280  |            |   |   | 268,847 |   |   |   | 1,188 |   |
| Other long-term liabilities              |   |   | 13,846  |   |      |   | 6,226   |            |   |   | 2,853   |   |   |   | 4,767 |   |
|                                     |   |   |    |   |      |   |    |            |   |   |    |   |   |   |   |   |
| Total financial liabilities              |   |   | 523,267 |   |      |   | 245,612 |            |   |   | 271,700 |   |   |   | 5,955 |   |

----

| . | Net debt to equity ratio below 0.5 to 1 |
|---|-----------------------------------------|

| . | Return on equity (ROE) at or above 14% |
|---|----------------------------------------|

----

| 17.   Accumulated Other Comprehensive Income (Loss) |   |        |    |   |           |   |   |           |   |   |           |   |   |
|----------------------------------------------------------|--------|-------------|---------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|
|                                                     |   |        |    |   |           |   |   |           |   |   | Realized       |   |   |   |   |
|                                                     |   |        |    |   |           |   |   |           |   |   | (Gains) Losses |   |   |   |   |
|                                                     |   |        |    |   | Unrealized     |   |   | Unrealized     |   |   | on Financial   |   |   |   |   |
|                                                     |   | Currency    |    |   | Gains (Losses) |   |   | Gains (Losses) |   |   | Assets         |   |   |   |   |
|                                                     |   | Translation |    |   | on Cash Flow   |   |   | on Financial   |   |   | Transferred to |   |   |   |   |
|                                                     |   | Adjustments |    |   | Hedge          |   |   | Assets         |   |   | Net Income     |   |   | Total |   |
| (In thousands of Canadian dollars)                       |   | $           |    |   | $              |   |   | $              |   |   | $              |   |   | $ |   |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |
| Balance, December 31, 2007                               |   |        | (70,513 | )      |           |   | -      |           |   |   | 1,730          |   |   |   | (245 | ) |   |   | (69,028 | ) |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Current period activity                                  |   |        | 76,923  |   |           |   | (4,218 | )              |   |   | (3,706         | )      |   |   | (152 | ) |   |   | 68,847 |   |
| Income tax effect                                        |   |        | -       |   |           |   | 1,244  |           |   |   | 65             |   |   |   | 3 |   |   |   | 1,312 |   |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                               |   |        | 6,410   |   |           |   | (2,974 | )              |   |   | (1,911         | )      |   |   | (394 | ) |   |   | 1,131 |   |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Current period activity                                  |   |        | (57,248 | )      |           |   | 2,061  |           |   |   | 2,739          |   |   |   | 223 |   |   |   | (52,225 | ) |
| Income tax effect                                        |   |        | -       |   |           |   | (618   | )              |   |   | (48            | )      |   |   | (4 | ) |   |   | (670 | ) |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                               |   |        | (50,838 | )      |           |   | (1,531 | )              |   |   | 780            |   |   |   | (175 | ) |   |   | (51,764 | ) |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Current period activity                                  |   |        | (18,981 | )      |           |   | 2,157  |           |   |   | 1,653          |   |   |   | 270 |   |   |   | (14,901 | ) |
| Income tax effect                                        |   |        | -       |   |           |   | (626   | )              |   |   | (29            | )      |   |   | (4 | ) |   |   | (659 | ) |
|                                                     |   |        |    |   |           |   |   |           |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                               |   |        | (69,819 | )      |           |   | -      |           |   |   | 2,404          |   |   |   | 91 |   |   |   | (67,324 | ) |

----

|                                             |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                             |   | %      |   |   | %      |   |   | %      |   |
|                                             |   |   |   |   |   |   |   |   |   |
| Income tax expense at statutory Canadian rates   |   |   | 29.2   |   |   |   | 30.4   |   |   |   | 31.2 |   |
| Increase (decrease) resulting from:              |   |   |   |   |   |   |   |   |   |   |   |   |
| Impairment of goodwill                           |   |   | -      |   |   |   | 10.8   |   |   |   | 24.8 |   |
| Income from associated companies                 |   |   | (0.3   | )      |   |   | (0.5   | )      |   |   | - |   |
| Rate differential on foreign income              |   |   | (0.9   | )      |   |   | (1.0   | )      |   |   | (0.1 | ) |
| Taxable capital gains                            |   |   | 3.8    |   |   |   | -      |   |   |   | - |   |
| Non-deductible expenses:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Meals and entertainment                          |   |   | 0.9    |   |   |   | 1.0    |   |   |   | 1.1 |   |
| Stock-based compensation                         |   |   | 0.3    |   |   |   | 0.7    |   |   |   | 1.0 |   |
| Non-taxable foreign income net of non-creditable |   |   |   |   |   |   |   |   |   |   |   |   |
| withholding taxes                                |   |   | (2.8   | )      |   |   | (3.0   | )      |   |   | (2.9 | ) |
| Other                                            |   |   | (0.3   | )      |   |   | 0.6    |   |   |   | (0.1 | ) |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   | 29.9   |   |   |   | 39.0   |   |   |   | 55.0 |   |

|                                                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| (In thousands of Canadian dollars)                               |   | $      |    |   | $      |   |    | $      |   |
|                                                             |   |   |    |   |   |   |    |   |   |
| Domestic                                                         |   |   | 151,533 |   |   |   | 131,503 |   |   |   | 128,225 |   |
| Foreign                                                          |   |   | (18,017 | )      |   |   | (39,837 | )      |   |   | (63,726 | ) |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Total income before income taxes                                 |   |   | 133,516 |   |   |   | 91,666  |   |   |   | 64,499 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| The details of the income tax expense (recovery) are as follows: |   |   |    |   |   |   |    |   |   |   |   |   |

|                               |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (In thousands of Canadian dollars) |   | $      |   |   | $      |   |   | $      |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Current: Domestic                  |   |   | 41,562 |   |   |   | 40,425 |   |   |   | 41,329 |   |
| Foreign                            |   |   | 867    |   |   |   | 1,174  |   |   |   | (116 | ) |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total current expense              |   |   | 42,429 |   |   |   | 41,599 |   |   |   | 41,213 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Future: Domestic                   |   |   | (1,560 | )      |   |   | (3,267 | )      |   |   | (133 | ) |
|   Foreign                     |   |   | (948   | )      |   |   | (2,606 | )      |   |   | (5,598 | ) |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total future recovery              |   |   | (2,508 | )      |   |   | (5,873 | )      |   |   | (5,731 | ) |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total: Domestic                    |   |   | 40,002 |   |   |   | 37,158 |   |   |   | 41,196 |   |
| Foreign                            |   |   | (81    | )      |   |   | (1,432 | )      |   |   | (5,714 | ) |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total income tax expense           |   |   | 39,921 |   |   |   | 35,726 |   |   |   | 35,482 |   |

----

| Significant components of the Company's future income tax assets and liabilities are as follows: |   |   |         |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|
|                                                                                             |   | 2010   |         |   | 2009 |   |
| (In thousands of Canadian dollars)                                                               |   | $      |         |   | $ |   |
|                                                                                             |   |   |         |   |   |   |
| Future income tax assets                                                                         |   |   |         |   |   |   |
| Differences in timing of deductibility of expenses                                               |   |   | 22,341       |   |   |   | 21,363 |   |
| Loss carryforwards                                                                               |   |   | 9,581        |   |   |   | 13,680 |   |
| Share issue and other financing costs                                                            |   |   | 28           |   |   |   | 47 |   |
| Tax cost of property and equipment in excess of carrying value                                   |   |   | 2,458        |   |   |   | 1,049 |   |
| Deferred gain on sale of building                                                                |   |   | 585          |   |   |   | 747 |   |
| Other                                                                                            |   |   | 2,462        |   |   |   | 2,572 |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   |  37,455 |   |   |   |  39,458 |   |
| Less current portion                                                                             |   |   | 16,059       |   |   |   | 15,518 |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   | 21,396       |   |   |   | 23,940 |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   | 2010         |   |   |   | 2009 |   |
| (In thousands of Canadian dollars)                                                               |   |   |  $      |   |   |   |  $ |   |
|                                                                                             |   |   |         |   |   |   |   |   |
| Future income tax liabilities                                                                    |   |   |         |   |   |   |   |   |
| Cash to accrual adjustments on acquisitions of US subsidiaries                                   |   |   | 5,402        |   |   |   | 2,266 |   |
| Differences in timing of taxability of revenues                                                  |   |   | 7,766        |   |   |   | 9,202 |   |
| Carrying value of property and equipment in excess of tax cost                                   |   |   | 6,455        |   |   |   | 6,668 |   |
| Carrying value of intangible assets in excess of tax cost                                        |   |   | 24,099       |   |   |   | 23,262 |   |
| Other                                                                                            |   |   | 2,870        |   |   |   | 3,781 |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   |  46,592 |   |   |   |  45,179 |   |
| Less current portion                                                                             |   |   | 15,843       |   |   |   | 15,643 |   |
|                                                                                             |   |   |         |   |   |   |   |   |
|                                                                                             |   |   | 30,749       |   |   |   | 29,536 |   |

| (In thousands of Canadian dollars) |     | $      |
|------------------------------------|----------|--------|
|                               |     |   |
|                               | 2030     | 1,959  |
|                               | 2029     | 335    |
|                               | 2028     | 34     |
|                               | 2027     | 719    |
|                               | 2026     | 71     |
|                               | pre 2016 | 302    |
|                               |     |   |
|                               |     | 3,420  |

----

|                                                                                                                                         | 2010       | 2009       | 2008       |
|----------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|------------|
|                                                                                                                                         | $          | $          | $          |
|                                                                                                                                         |       |       |       |
| Basic shares outstanding                                                                                                                     | 45,690,555 | 45,544,688 | 45,584,612 |
|         Share options (dilutive effect of 624,165 options; 2009– 1,329,798; 2008 – 1,621,828) | 210,440    | 276,927    | 472,107    |
|         Restricted shares (dilutive effect of nil restricted shares; 2009 – nil; 2008 – nil)  | -          | -          | 562        |
|                                                                                                                                         |       |       |       |
| Diluted shares outstanding                                                                                                                   | 45,900,995 | 45,821,615 | 46,057,281 |

|                                                                                                         |    | 2010    |    | 2009    |    | 2008    |   |
|--------------------------------------------------------------------------------------------------------------|---------|---------|---------|---------|---------|---------|--------|
| (In thousands of Canadian dollars)                                                                           |    | $       |    | $       |    | $       |   |
|                                                                                                         |    |    |    |    |    |    |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                         |    |    |    |    |    |    |
| Net income for the year                                                                                      |    | 93,595  |    | 55,940  |    | 29,017  |   |
| Add (deduct) items not affecting cash:                                                                       |    |    |    |    |    |    |   |
| Depreciation of property and equipment                                                                       | 24,402  |    | 24,547  |    | 21,820  |    |
| Amortization of intangible assets                                                                            |    | 17,599  |    | 19,820  |    | 14,264  |   |
| Impairment of goodwill and intangible assets                                                                 | 1,772   |    | 35,000  |    | 58,369  |    |
| Future income tax                                                                                            |    | (2,508  | )       | (5,873  | )       | (5,731  | )      |
| Loss (gain) on dispositions of investments and property                                                      |    |    |    |    |    |    |
| and equipment                                                                                                |    | 586     |    | 2,520   |    | (520    | )      |
| Gain on sale of equity investments (note 6)                                                                  | (7,183  | )       | -       |    | -       |    |
|             Stock-based compensation expense(note 14) | 2,822   |    | 3,985   |    | 5,118   |    |
| Provision for self-insured liability(note 9)                                                                 | 9,405   |    | 9,443   |    | 12,470  |    |
| Share of income from equity investments                                                                      | (2,209  | )       | (3,690  | )       | (160    | )       |
| Dividends from equity investments                                                                            |    | 2,852   |    | 1,283   |    | 150     |   |
| Other non-cash items                                                                                         |    | (5,019  | )       | (9,446  | )       | (3,445  | )      |
|                                                                                                         |    |    |    |    |    |    |   |
|                                                                                                         |    | 136,114 |    | 133,529 |    | 131,352 |   |
|                                                                                                         |    |    |    |    |    |    |
| Change in non-cash working capital accounts:                                                                 |    |    |    |    |    |    |
| Accounts receivable                                                                                          |    | 11,586  |    | 37,298  |    | 23,987  |   |
| Costs and estimated earnings in excess of billings                                                           | (1,268  | )       | (8,486  | )       | 21,305  |    |
| Prepaid expenses                                                                                             |    | 3,858   |    | (1,953  | )       | 2,499   |   |
| Accounts payable and accrued liabilities                                                                     | (21,793 | )       | (49,800 | )       | (20,088 | )       |
| Billings in excess of costs and estimated earnings                                                           | (13,175 | )       | 6,522   |    | 2,728   |    |
| Income taxes payable/recoverable                                                                             |    | (538    | )       | (17,133 | )       | (1,753  | )      |
|                                                                                                         |    |    |    |    |    |    |   |
|                                                                                                         |    | (21,330 | )       | (33,552 | )       | 28,678  |   |
|                                                                                                         |    |    |    |    |    |    |
| Cash flows from operating activities                                                                         | 114,784 |    | 99,977  |    | 160,030 |    |

----

| 21.  Joint Ventures                                             |   |             |   |   |   |   |        |   |   |
|---------------------------------------------------------------------------|--------|------------------|--------|--------|--------|--------|-------------|--------|--------|
| The Company participates in joint ventures with other parties as follows: |   |             |   |   |   |   |        |
|                                                                      |   | Percentage Owned |
|                                                                      |   | 2010             |   |   | 2009   |   |        | 2008   |   |
|                                                                      |   | %                |   |   | %      |   |        | %      |   |
|                                                                      |   |             |   |   |   |   |        |   |   |   |   |   |
| yyC.T. Joint Venture                                                      |   |             | 17     |   |   |   | 17          |   |   |   | 17 |   |
| Stantec – S&L Partnership                                       |   |             | n/a    |   |   |   | n/a         |   |   |   | 50 |   |
| Edmonton International Airports Joint Venture                             |   |             | n/a    |   |   |   | n/a         |   |   |   | 33 |   |
| Dunlop Joint Ventures                                                     |   |             | 53     |   |   |   | 50–53 |   |   |   | 33–68 |   |
| Stantec Architecture Ltd./J.L. Richards & Associates                  |   |             |   |   |   |   |        |   |   |   |   |   |
| Joint Venture                                                             |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| Stantec/Parkin Joint Venture                                              |   |             | n/a    |   |   |   | n/a         |   |   |   | 67 |   |
| Smith/Chong Joint Venture                                                 |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| Coleson Power Group Inc.                                                  |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| ACCENT Engineering Consultants Incorporated                               |   |             | 40     |   |   |   | 40          |   |   |   | 40 |   |
| FFEB JV, L.L.C.                                                           |   |             | 30     |   |   |   | 30          |   |   |   | 30 |   |
| Carter Burgess/FMSM Engineers JV                                          |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| Hatch McIntosh Alliance Joint Venture                                     |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| Kuwabara Payne McKenna Blumberg (KPMB)                                    |   |             | 50     |   |   |   | 50          |   |   |   | 50 |   |
| HNTB Joint Venture                                                        |   |             | 50     |   |   |   | 50          |   |   |   | n/a |   |
| STARR                                                                     |   |             | 15     |   |   |   | 15          |   |   |   | n/a |   |
| EM&I Stantec Ltd.                                                     |   |             | 50     |   |   |   | 50          |   |   |   | n/a |   |
| Stassinu Stantec Limited Partnership                                      |   |             | 49     |   |   |   | 49          |   |   |   | n/a |   |
| Granary/Driscoll Joint Venture                                            |   |             | 50     |   |   |   | 50          |   |   |   | n/a |   |
| INCA/FMSM                                                                 |   |             | 50     |   |   |   | n/a         |   |   |   | n/a |   |

|                                           |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (In thousands of Canadian dollars)             |   | $      |   |   | $      |   |   | $      |   |
|                                           |   |   |   |   |   |   |   |   |   |
| Statements of income                           |   |   |   |   |   |   |   |   |   |
| Gross revenue                                  |   |   | 24,000 |   |   |   | 32,757 |   |   |   | 25,827 |   |
| Subcontractor costs and other direct expenses  |   |   | 21,193 |   |   |   | 27,753 |   |   |   | 24,524 |   |
| Administrative and marketing expenses          |   |   | 1,533  |   |   |   | 2,533  |   |   |   | 911 |   |
| Income taxes                                   |   |   | 73     |   |   |   | -      |   |   |   | - |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the year                        |   |   | 1,201  |   |   |   | 2,471  |   |   |   | 392 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance sheets                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                                 |   |   | 7,665  |   |   |   | 9,458  |   |   |   | 12,649 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities                            |   |   | 5,922  |   |   |   | 7,753  |   |   |   | 12,120 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Statements of cash flows                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from (used in) operating activities |   |   | (817   | )      |   |   | 1,707  |   |   |   | (547 | ) |

----

|                          |   |                        |    |   |
|------------------------------------|--------|-----------------------------|---------|--------|
| Geographic information             |   | Property and Equipment,     |    |
|                               |   | Goodwill, Intangible Assets |    |
|                               |   |                        |    |   |   |   |
|                               |   | 2010                        |    |   | 2009 |   |
| (In thousands of Canadian dollars) |   | $                           |    |   | $ |   |
|                               |   |                        |    |   |   |   |
| Canada                             |   |                        | 313,269 |   |   |   | 306,718 |   |
| United States                      |   |                        | 425,236 |   |   |   | 334,031 |   |
| International                      |   |                        | 307     |   |   |   | 476 |   |
|                               |   |                        |    |   |   |   |   |   |
|                               |   |                        | 738,812 |   |   |   | 641,225 |   |

| Geographic information             |   |   |      |   | Gross Revenue |   |      |   |   |
|------------------------------------|--------|--------|-----------|--------|---------------|--------|-----------|--------|--------|
|                               |   |   |      |   |          |   |      |   |   |
|                               |   | 2010   |      |   | 2009          |   |      | 2008   |   |
| (In thousands of Canadian dollars) |   | $      |      |   | $             |   |      | $      |   |
|                               |   |   |      |   |          |   |      |   |   |
| Canada                             |   |   | 887,103   |   |          |   | 861,905   |   |   |   | 649,465 |   |
| United States                      |   |   | 596,569   |   |          |   | 631,091   |   |   |   | 677,545 |   |
| International                      |   |   | 29,390    |   |          |   | 26,869    |   |   |   | 24,941 |   |
|                               |   |   |      |   |          |   |      |   |   |   |   |   |
|                               |   |   | 1,513,062 |   |          |   | 1,519,865 |   |   |   | 1,351,951 |   |

| Gross revenue is attributed to countries based on the location of the project.   |   |   |      |   |
|--------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| Practice area information                                                                  |   |   |      |   | Gross Revenue |   |   |   |   |
|                                                                                       |   |   |      |   |   |   |   |   |   |
|                                                                                       |   | 2010   |      |   | 2009 |   |   | 2008 |   |
| (In thousands of Canadian dollars)                                                         |   | $      |      |   | $ |   |   | $ |   |
|                                                                                       |   |   |      |   |   |   |   |   |   |
| Consulting Services                                                                        |   |   |      |   |   |   |   |   |   |
| Buildings                                                                                  |   |   | 333,217   |   |   |   | 300,549 |   |   |   | 305,936 |   |
| Environment                                                                                |   |   | 601,845   |   |   |   | 642,367 |   |   |   | 390,016 |   |
| Industrial                                                                                 |   |   | 221,093   |   |   |   | 226,177 |   |   |   | 217,722 |   |
| Transportation                                                                             |   |   | 189,294   |   |   |   | 181,989 |   |   |   | 172,313 |   |
| Urban Land                                                                                 |   |   | 167,613   |   |   |   | 168,783 |   |   |   | 265,964 |   |
|                                                                                       |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | 1,513,062 |   |   |   | 1,519,865 |   |   |   | 1,351,951 |   |
|  Customers                                                                            |   |   |      |   |   |   |   |   |   |   |   |   |

----

| a) | Reconciliation to US GAAP |
|----|---------------------------|

| i) | Business combinations |
|----|-----------------------|

| Condensed consolidated statement of income using US GAAP |                             |   |   |   |   |   |
|----------------------------------------------------------|----------------------------------|--------|--------|--------|--------|--------|
|                                                     |                             |   | 2010   |   |   | 2009   |   |
| (In thousands of Canadian dollars)                       |                             |   | $      |   |   | $      |   |
|                                                     |                             |   |   |   |   |   |   |   |
| Net income, as reported under Canadian GAAP              |                             |   | 93,595 |   |   |   | 55,940 |   |
| Add (deduct) adjustments to arrive at US GAAP:           |                             |   |   |   |   |   |   |   |
| Lease exit costs (1)                                     |                             |   |   | 57     |   |   |   | (3,220 | ) |
| Acquisition-related costs (3)                            |                             |   | (2,591 | )      |   |   | (2,167 | ) |
| Income taxes (6)                                         |                             |   |   | 960    |   |   |   | 1,829 |   |
|                                                     |                             |   |   |   |   |   |   |   |
| Net income, based on US GAAP                             |                             |   | 92,021 |   |   |   | 52,382 |   |
|                                                     |                             |   |   |   |   |   |   |   |   |
| Earnings per share: basic                                | – Canadian GAAP net income |   |   | 2.05   |   |   |   | 1.23 |   |
|                                                     | – US GAAP net income       |   |   | 2.01   |   |   |   | 1.15 |   |
| Earnings per share: diluted                              | – Canadian GAAP net income |   |   | 2.04   |   |   |   | 1.22 |   |
|                                                     | – US GAAP net income       |   |   | 2.00   |   |   |   | 1.14 |   |

----

| Consolidated balance sheet items using US GAAP               |   |   |    |   |   |   |
|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                         |   | 2010   |    |   | 2009   |   |
| (In thousands of Canadian dollars)                           |   | $      |    |   | $      |   |
|                                                         |   |   |    |   |   |   |
| Add (deduct) adjustments to arrive at US GAAP balance sheet: |   |   |    |   |   |   |
| Goodwill (1, 2, 3, and 5)                                    |   |   | (4,770  | )      |   |   | (3,301 | ) |
| Future income tax assets (short term) (6)                    |   |   | (907    | )      |   |   | (217 | ) |
| Other assets (4)                                             |   |   | 1,623   |   |   |   | 1,623 |   |
| Accounts payable and accrued liabilities (3)                 |   |   | (400    | )      |   |   | (29 | ) |
| Other liabilities (current) (1 and 3)                        |   |   | (1,778  | )      |   |   | (829 | ) |
| Long-term debt (long term) (2)                               |   |   | 200     |   |   |   | 134 |   |
| Other liabilities (long term) (1 and 4)                      |   |   | 1,623   |   |   |   | 1,623 |   |
| Non-controlling interest (5)                                 |   |   | (103    | )      |   |   | (186 | ) |
|                                                         |   |   |    |   |   |   |   |   |
|                                                         |   |   |    |   |   |   |   |   |
| Shareholders' equityusing US GAAP                            |   |   |    |   |   |   |   |   |
|                                                         |   |   |    |   |   |   |   |   |
| Shareholders' equityunder Canadian GAAP                      |   |   | 625,475 |   |   |   | 547,394 |   |
| Lease exit costs (1)                                         |   |   | (3,163  | )      |   |   | (3,220 | ) |
| Acquisition-related costs (3)                                |   |   | (4,758  | )      |   |   | (2,167 | ) |
| Income taxes (6)                                             |   |   | 2,789   |   |   |   | 1,829 |   |
| Non-controlling interest (5)                                 |   |   | 1,536   |   |   |   | 950 |   |
|                                                         |   |   |    |   |   |   |   |   |
| Shareholders' equitybased on US GAAP                         |   |   | 621,879 |   |   |   | 544,786 |   |

| (1) | Lease exit costs. Per ASC 805-10/SFAS 141R, the postacquisition exit/restructuring plans of the acquiring company are expensed in the income statement as incurred. Under Canadian GAAP, many of these costs are recognized as liabilities in the purchase price allocation and impact goodwill. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Contingent consideration. Per ASC 805-10/SFAS 141R, the Company is required to recognize contingent consideration at the date of acquisition, based on the fair value at that date, as a liability or equity depending on its nature. The remeasurement of the liability each quarter-end impacts earnings until the liability is settled. Under Canadian GAAP, a liability for contingent consideration is only recognized at the date of acquisition when the amount is determinable; therefore, contingent consideration is generally recognized when the contingency is resolved and the consideration becomes payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Acquisition-related costs. Per ASC 805-10/SFAS 141R, the acquirer accounts for acquisition-related costs as expenses in the period in which the costs are incurred. Under Canadian GAAP, incremental costs incurred as a result of a business combination are recognized as costs of the business combination and impact goodwill. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Indemnifications. Per ASC 805-10/SFAS 141R, if a seller contractually indemnifies the acquirer for the outcome of a contingency, the acquirer must recognize an indemnification asset at the same time and on the same basis that it recognizes the indemnified item, subject to the need for a valuation allowance for uncollectible amounts. Therefore, if the indemnified item is recognized at the acquisition date at its acquisition-date fair value, the acquirer must also recognize the indemnification asset at its acquisition-date fair value. There is no similar requirement under Canadian GAAP. Pursuant to the Jacques Whitford acquisition, the acquiree indemnified the Company up to a maximum of $1,623,000 for certain legal claims. The full $1,623,000 was recorded as an asset and liability in the above table since it was management's best estimate of the potential future payment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Non-controlling interest. ASC 805-10/SFAS 141R requires the non-controlling interest in an acquiree to be measured at fair value. Under Canadian GAAP, the non-controlling interest's percentage of net assets acquired is recorded at its existing carrying value. ASC 805-10/SFAS 141R records non-controlling interests in shareholders’ equity on the balance sheet, whereas Canadian GAAP records non-controlling interest between liabilities and shareholder’s equity. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Income taxes. Income taxes reflect the tax effect of the differences identified above. |
|-----|----------------------------------------------------------------------------------------|

|                                                     |   | 2010   |              | 2009   |      |
|----------------------------------------------------------|--------|--------|-------------------|--------|-----------|
| (In thousands of Canadian dollars)                       |   | $      |              | $      |      |
|                                                     |   |   |              |   |
|                                                     |   |   |  (Unaudited) |
| Pro forma gross revenue                                  |   |   | 1,692,132         |   | 1,873,577 |   |
| Pro forma net revenue                                    |   |   | 1,337,272         |   | 1,466,061 |   |
| Pro forma net income                                     |   |   | 98,671            |   | 63,637    |   |
| Basic pro forma earnings per share                       |   |   | 2.16              |   | 1.40      |   |
| Diluted pro forma earnings per share                     |   |   | 2.15              |   | 1.39      |   |
|   iii) Liabilities for uncertain tax positions |   |   |              |   |      |   |

|                                                         |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (In thousands of Canadian dollars)                           |   | $      |   |   | $      |   |
|                                                         |   |   |   |   |   |   |
| Balance, beginning of the year                               |   |   | 1,529  |   |   |   | 1,725 |   |
| Additions based on tax positions related to the current year |   |   | 205    |   |   |   | 159 |   |
| Additions based on tax positions related to the prior year   |   |   | -      |   |   |   | - |   |
| Reductions for tax positions of prior years                  |   |   | (194   | )      |   |   | (181 | ) |
| Impact of foreign exchange                                   |   |   | (67    | )      |   |   | (174 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Balance, end of the year                                     |   |   | 1,473  |   |   |   | 1,529 |   |

----

|                               |            | Quoted Prices in   |              |             |
|------------------------------------|-----------------|--------------------|-------------------|------------------|
|                               |            | Active Markets for | Significant Other | Significant      |
|                               | Carrying Amount | Identical Items    | Observable Inputs | Unobservable     |
|                               | of Asset        | (Level 1)          | (Level 2)         | Inputs (Level 3) |
| (In thousands of Canadian dollars) | $               | $                  | $                 | $                |
|                               |            |               |              |             |
| Assets:                            |            |               |              |             |
| Goodwill                           |            |               |              |             |
|    December31,2009       | 468,814         | -                  | -                 | 468,814          |
|    December31,2010       | 551,446         | -                  | -                 | 551,446          |
|                               |            |               |              |             |
|                               |            |               |              |             |
| Intangibles                        |            |               |              |             |
|    December31,2009       | 64,155          | -                  | -                 | 64,155           |
|    December31,2010       | 73,370          | -                  | -                 | 73,370           |
|                               |            |               |              |             |

|                                              | Fair Values of Liability Derivative Instruments |   |
|---------------------------------------------------|-------------------------------------------------|--------|
| (In thousands of Canadian dollars)                | as at December 31, 2009                         |   |
|                                              |                                            |   |   |   |
|                                              | Balance Sheet                                   |   | Fair Value |   |
|                                              | Location                                        |   | $ |   |
|                                              |                                            |   |   |   |   |
| Derivative designated as cash flow hedge          |                                            |   |   |   |   |
| Interest rate swap                                | Other liabilities                               |   |   | 2,157 |   |
|                                              |                                            |   |   |   |   |
|                                              |                                            |   |   |   |   |
| Derivatives not designated as hedging instruments |                                            |   |   |   |   |
| Foreign currency forward contracts                | Other liabilities                               |   |   | 270 |   |

----

| (In thousands of Canadian dollars)                         |                    |   |   |                                            |   |   |
|------------------------------------------------------------|-------------------------|--------|--------|-------------------------------------------------|--------|--------|
|                                                       |                    |   |   |                                            |   |
|                                                       |                    |   |   | (Gain) Loss Recognized in OCI on Derivative     |   |
|                                                       |                    |   |   |                                            |   |
|                                                       |                    |   |   | (Effective Portion) $                           |   |
| Derivative designated as cash flow hedge                   |                    |   |   |
|                                                       |                    |   |   |
| Interest rate swap (net of tax)–December 31, 2009    |                    | (1,443 | )      |
| Interest rate swap (net of tax)–December 31, 2010    |                    | (1,531 | )      |
|                                                       |                    |   |   |                                            |   |
|                                                       |                    |   |   | (Gain) Loss Recognized in Income on Derivatives |   |
|                                                       |                    |   |   |                                            |   |   |
|                                                       |                    |   |   | Location                                        | $      |   |
|                                                       |                    |   |   |
| Derivatives not designated as hedging instruments          |                    |   |   |
|                                                       |                    |   |   |
| Foreign currency forward contracts–December 31, 2009 | Foreign exchange losses | 10,206 |   |
| Foreign currency forward contracts–December 31, 2010 | Foreign exchange losses | 2,098  |   |
|                                                       |                    |   |   |
|                                                       |                    |   |   |
| b) Recently adopted accounting pronouncements              |                    |   |   |

----

----

----

----