----

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| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|

| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

----

----

| PART I—FINANCIAL INFORMATION                                                                  |   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |
| Item 1. Financial Statements:                                                                  |   |
|                                                                                                |   |
| Consolidated Statements of Operations for the Three Months Ended March 31, 2010 and 2009            | 3      |
|                                                                                                |   |
| Consolidated Balance Sheets as of March 31, 2010 and December 31, 2009                              | 4      |
|                                                                                                |   |
| Consolidated Statements of Equity for the Three Months Ended March 31, 2010 and  2009     | 5      |
|                                                                                                |   |
| Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009            | 6      |
|                                                                                                |   |
| Notes to Consolidated Financial Statements                                                          | 7      |
|                                                                                                |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19     |
|                                                                                                |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                             | 31     |
|                                                                                                |   |
| Item 4. Controls and Procedures                                                                | 32     |
|                                                                                                |   |
| PART II—OTHER INFORMATION                                                                     |   |
|                                                                                                |   |
| Item 1. Legal Proceedings                                                                      | 33     |
|                                                                                                |   |
| Item 1A. Risk Factors                                                                          | 33     |
|                                                                                                |   |
| Item 6. Exhibits                                                                               | 33     |
|                                                                                                |   |
| SIGNATURE                                                                                           | 34     |
|                                                                                                |   |
| INDEX TO EXHIBITS                                                                                   | 35     |

----

|                                                                        |   | For the Three MonthsEnded March 31, |                                                                     |
|-----------------------------------------------------------------------------|--------|-------------------------------------|--------------------------------------------------------------------------|
|                                                                        |   |       2010 |                                                                     |   |       2009 |   |
|                                                                        |   |                                |                                                                     |   |   |   |
| Revenues                                                                    |   |                                | $      199,182                                  |   |   |   | $      128,012 |   |
| Cost of revenues                                                            |   |                                | 150,502                                                                  |   |   |   | 97,339 |   |
| Gross profit                                                                |   |                                | 48,680                                                                   |   |   |   | 30,673 |   |
| Acquisition-related expenses                                                |   |                                | –                                                                  |   |   |   | 8,219 |   |
| Operating expenses                                                          |   |                                | 36,174                                                                   |   |   |   | 22,375 |   |
| Operating income                                                            |   |                                | 12,506                                                                   |   |   |   | 79 |   |
| Other income (expense):                                                     |   |                                |                                                                     |   |   |   |   |   |
| Interest income                                                             |   |                                | 104                                                                      |   |   |   | 349 |   |
| Interest expense                                                            |   |                                | (2,378                                                                   | ) |   |   | (1,124 | ) |
| Other                                                                       |   |                                | (158                                                                     | ) |   |   | (82 | ) |
| Total other expense                                                         |   |                                | (2,432                                                                   | ) |   |   | (857 | ) |
| Income (loss) before taxes on income                                        |   |                                | 10,074                                                                   |   |   |   | (778 | ) |
| Taxes on income (tax benefits)                                              |   |                                | 3,199                                                                    |   |   |   | (411 | ) |
| Income (loss) before equity in earnings (losses) of affiliated companies    |   |                                | 6,875                                                                    |   |   |   | (367 | ) |
| Equity in earnings (losses) of affiliated companies, net of tax             |   |                                | 1,152                                                                    |   |   |   | (315 | ) |
| Income (loss) before discontinued operations                                |   |                                | 8,027                                                                    |   |   |   | (682 | ) |
| Loss from discontinued operations, net of tax                               |   |                                | (49                                                                      | ) |   |   | (98 | ) |
| Net income (loss)                                                           |   |                                | 7,978                                                                    |   |   |   | (780 | ) |
| Less:  net (income) loss attributable to noncontrolling interests |   |                                | 483                                                                      |   |   |   | (425 | ) |
| Net income (loss) attributable to common stockholders                       |   |                                | $          8,461            |   |   |   | $         (1,205 | ) |
|                                                                        |   |                                |                                                                     |   |   |   |   |   |
| Earnings (loss) per share attributable to common stockholders:              |   |                                |                                                                     |   |   |   |   |   |
| Basic:                                                                      |   |                                |                                                                     |   |   |   |   |   |
| Income (loss) from continuing operations                                    |   |                                | $            0.22 |   |   |   | $           (0.04 | ) |
| Loss from discontinued operations                                           |   |                                | (0.00                                                                    | ) |   |   | (0.00 | ) |
| Net income (loss)                                                           |   |                                | $            0.22 |   |   |   | $           (0.04 | ) |
| Diluted:                                                                    |   |                                |                                                                     |   |   |   |   |   |
| Income (loss) from continuing operations                                    |   |                                | $            0.22 |   |   |   | $           (0.04 | ) |
| Loss from discontinued operations                                           |   |                                | (0.00                                                                    | ) |   |   | (0.00 | ) |
| Net income (loss)                                                           |   |                                | $            0.22 |   |   |   | $           (0.04 | ) |

----

|                                                                                                                                               |   |   March 31,   2010 |                                          |   |  December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------------------------------------------|--------|------------------------------|--------|
|                                                                                                                                               |   |                              |                                          |   |                         |   |
| Assets                                                                                                                                             |   |                              |                                          |   |                         |   |
|  Current assets                                                                                                                               |   |                              |                                          |   |                         |   |
|      Cash and cash equivalents                                                                                            |   |                              | $        95,221 |   |                         |   | $       106,064 |   |
|      Restricted cash                                                                                                      |   |                              | 1,331                                         |   |                         |   | 1,339 |   |
|  Receivables, net                                                                                                                             |   |                              | 146,552                                       |   |                         |   | 147,835 |   |
|  Retainage                                                                                                                                    |   |                              | 22,866                                        |   |                         |   | 22,656 |   |
|  Costs and estimated earnings in excess of billings                                                                                           |   |                              | 68,186                                        |   |                         |   | 64,821 |   |
|  Inventories                                                                                                                                  |   |                              | 37,153                                        |   |                         |   | 32,125 |   |
|  Prepaid expenses and other assets                                                                                                            |   |                              | 30,388                                        |   |                         |   | 27,604 |   |
|  Current assets of discontinued operations                                                                                                    |   |                              | 1,189                                         |   |                         |   | 1,189 |   |
|  Total current assets                                                                                                                         |   |                              | 402,886                                       |   |                         |   | 403,633 |   |
|  Property, plant and equipment, less accumulated depreciation                                                                                 |   |                              | 152,897                                       |   |                         |   | 148,435 |   |
|  Other assets                                                                                                                                 |   |                              |                                          |   |                         |   |   |   |
|  Goodwill                                                                                                                                     |   |                              | 182,147                                       |   |                         |   | 180,506 |   |
|  Identified intangible assets, less accumulated amortization                                                                                  |   |                              | 77,316                                        |   |                         |   | 78,311 |   |
|  Investments in affiliated companies                                                                                                          |   |                              | 27,842                                        |   |                         |   | 27,581 |   |
|  Deferred income tax assets                                                                                                                   |   |                              | 10,724                                        |   |                         |   | 11,203 |   |
|  Other assets                                                                                                                                 |   |                              | 7,086                                         |   |                         |   | 8,827 |   |
|  Total other assets                                                                                                                           |   |                              | 305,115                                       |   |                         |   | 306,428 |   |
|  Non-current assets of discontinued operations                                                                                                |   |                              | 4,202                                         |   |                         |   | 4,283 |   |
|                                                                                                                                               |   |                              |                                          |   |                         |   |   |   |
| Total Assets                                                                                                                                       |   |                              | $      865,100       |   |                         |   | $       862,779 |   |
|                                                                                                                                               |   |                              |                                          |   |                         |   |   |   |
| Liabilities and Equity                                                                                                                             |   |                              |                                          |   |                         |   |   |   |
|  Current liabilities                                                                                                                          |   |                              |                                          |   |                         |   |   |   |
|      Accounts payable and accrued expenses                                                                                |   |                              | $      144,640       |   |                         |   | $       146,702 |   |
|      Billings in excess of costs and estimated earnings                                                                   |   |                              | 12,114                                        |   |                         |   | 12,697 |   |
|      Current maturities of long-term debt, line of credit and notes payable                                               |   |                              | 11,166                                        |   |                         |   | 12,742 |   |
|      Current liabilities of discontinued operations                                                                       |   |                              | 6                                             |   |                         |   | 339 |   |
|  Total current liabilities                                                                                                                    |   |                              | 167,926                                       |   |                         |   | 172,480 |   |
|  Long-term debt, less current maturities                                                                                                      |   |                              | 99,140                                        |   |                         |   | 101,500 |   |
|  Deferred income tax liabilities                                                                                                              |   |                              | 31,495                                        |   |                         |   | 31,449 |   |
|  Other liabilities                                                                                                                            |   |                              | 12,778                                        |   |                         |   | 12,849 |   |
|  Non-current liabilities of discontinued operations                                                                                           |   |                              | 1,017                                         |   |                         |   | 979 |   |
|  Total liabilities                                                                                                                            |   |                              | 312,356                                       |   |                         |   | 319,257 |   |
|                                                                                                                                               |   |                              |                                          |   |                         |   |   |   |
|  Stockholders’ equity                                                                                                                   |   |                              |                                          |   |                         |   |   |   |
|  Preferred stock, undesignated, $.10 par – shares authorized 2,000,000; none outstanding                                                |   |                              | –                                       |   |                         |   | – |   |
|  Common stock, $.01 par – shares authorized 60,000,000; shares issued and outstanding     39,238,379 and 38,933,944 |   |                              | 392                                           |   |                         |   | 389 |   |
|  Additional paid-in capital                                                                                                                   |   |                              | 246,094                                       |   |                         |   | 242,563 |   |
|  Retained earnings                                                                                                                            |   |                              | 295,248                                       |   |                         |   | 286,787 |   |
|  Accumulated other comprehensive income                                                                                                       |   |                              | 4,145                                         |   |                         |   | 8,313 |   |
|  Total stockholders’ equity before noncontrolling interests                                                                             |   |                              | 545,879                                       |   |                         |   | 538,052 |   |
|      Noncontrolling interests                                                                                             |   |                              | 6,865                                         |   |                         |   | 5,470 |   |
|  Total equity                                                                                                                                 |   |                              | 552,744                                       |   |                         |   | 543,522 |   |
|                                                                                                                                               |   |                              |                                          |   |                         |   |   |   |
| Total Liabilities and Equity                                                                                                                       |   |                              | $      865,100       |   |                         |   | $       862,779 |   |

----

|                                                                       |   |        Common Stock       Shares                 Amount |       |   |   Additional  Paid-In  Capital |   |                                                              |    Retained  Earnings |   |   |   Accumulated  Other Comprehensive  Income (Loss) |   |   |   Non  controlling  Interests |                              |   |    Total  Equity |   |                                                    |    Comprehensive  Income (Loss) |   |
|----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|-----------------------------------------------|--------|-------------------------------------------------------------------|--------------------------------------|--------|--------|-----------------------------------------------------------------------|--------|--------|---------------------------------------------------|-----------------------------------|--------|---------------------------------|--------|---------------------------------------------------------|------------------------------------------------|--------|
| BALANCE, December 31, 2008                                                 |   |                                                                                                                                                                                                     | 27,977,785 |   |                                          |   | $           280 |                                 |   |   | $     109,235                                     |   |   |                                              | $     260,616 |   |                            |   | $        (2,154      | )                                              |   |   | $           3,012 |   |   |   | $     370,989 |   |   |   |   |
| Net income (loss)                                                          |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | –                                                               |   |   |                                              | (1,205                            | )      |                            |   | –                                                 |                                           |   |   | 425 |   |   |   | (780 | ) |   |   | $           (780 | ) |
| Issuance of common stock                                                   |   |                                                                                                                                                                                                     | 10,499,766 |   |                                          |   | 105                                                               |                                 |   |   | 130,226                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 130,331 |   |   |   | – |   |
| Restricted stock units issued                                              |   |                                                                                                                                                                                                     | 383,615    |   |                                          |   | 4                                                                 |                                 |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 4 |   |   |   | – |   |
| Forfeitures of restricted stock shares and units                           |   |                                                                                                                                                                                                     | (30,313    | )      |                                          |   | (1                                                                | )                                    |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | (1 | ) |   |   | – |   |
| Costs of stock offering                                                    |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | (997                                                                  | )      |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | (997 | ) |   |   | – |   |
| Equity based compensation expense                                          |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | 868                                                                   |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 868 |   |   |   | – |   |
| Foreign currency translation adjustment                                    |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | 908                                                     |                                           |   |   | (33 | ) |   |   | 875 |   |   |   | 875 |   |
| Total comprehensive income                                                 |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | 95 |   |
| Less: total comprehensive income attributable to non-controlling interests |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | (392 | ) |
| Total comprehensive income attributable to common stockholders             |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | $           (297 | ) |
| BALANCE, March 31, 2009                                                    |   |                                                                                                                                                                                                     | 38,830,853 |   |                                          |   | $           388 |                                 |   |   | $     239,332                                     |   |   |                                              | $     259,411 |   |                            |   | $        (1,246      | )                                              |   |   | $           3,404 |   |   |   | $     501,289 |   |   |   |   |   |
|                                                                       |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, December 31, 2009                                                 |   |                                                                                                                                                                                                     | 38,933,944 |   |                                          |   | $           389 |                                 |   |   | $     242,563                                     |   |   |                                              | $     286,787 |   |                            |   | $         8,313 |                                           |   |   | $           5,470 |   |   |   | $     543,522 |   |   |   |   |   |
| Net income (loss)                                                          |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | –                                                               |   |   |                                              | 8,461                             |   |                            |   | –                                                 |                                           |   |   | (483 | ) |   |   | 7,978 |   |   |   | $         7,978 |   |
| Issuance of common stock upon exercise of stock options                    |   |                                                                                                                                                                                                     | 102,954    |   |                                          |   | 1                                                                 |                                 |   |   | 2,003                                                                 |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 2,014 |   |   |   | – |   |
| Restricted shares issued                                              |   |                                                                                                                                                                                                     | 178,570    |   |                                          |   | 2                                                                 |                                 |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 2 |   |   |   | – |   |
| Distribution of restricted stock units                                     |   |                                                                                                                                                                                                     | 22,911     |   |                                          |   | –                                                           |                                 |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | – |   |   |   | – |   |
| Equity based compensation expense                                          |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | 1,518                                                                 |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | – |   |   |   | 1,518 |   |   |   | – |   |
| Investment of non-controlling interests                                    |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | –                                                               |   |   |                                              | –                           |   |                            |   | –                                                 |                                           |   |   | 1,681 |   |   |   | 1,681 |   |   |   | – |   |
| Foreign currency translation adjustment                                    |   |                                                                                                                                                                                                     | –    |   |                                          |   | –                                                           |                                 |   |   | 10                                                                    |   |   |                                              | –                           |   |                            |   | (4,168                                                  | )                                              |   |   | 197 |   |   |   | (3,961 | ) |   |   | (3,961 | ) |
| Total comprehensive income                                                 |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | 4,017 |   |
| Less: total comprehensive income attributable to non-controlling interests |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | (1,395 | ) |
| Total comprehensive income attributable to common stockholders             |   |                                                                                                                                                                                                     |       |   |                                          |   |                                                              |                                 |   |   |                                                                  |   |   |                                              |                              |   |                            |   |                                                    |                                           |   |   |   |   |   |   |   |   |   |   | $         2,622 |   |
| BALANCE, March 31, 2010                                                    |   |                                                                                                                                                                                                     | 39,238,379 |   |                                          |   | $           392 |                                 |   |   | $     246,094                                     |   |   |                                              | $     295,248 |   |                            |   | $         4,145 |                                           |   |   | $           6,865 |   |   |   | $     552,744 |   |   |   |   |   |

----

|                                                                                    |   | For the Three MonthsEnded March 31, |                                                    |
|-----------------------------------------------------------------------------------------|--------|-------------------------------------|---------------------------------------------------------|
|                                                                                    |   |       2010 |                                                    |   |       2009 |   |
|                                                                                    |   |                                |                                                    |   |   |   |
| Cash flows from operating activities:                                                   |   |                                |                                                    |   |   |   |
| Net income (loss)                                                                       |   |                                | $         7,978 |   |   |   | $           (780 | ) |
| Loss from discontinued operations                                                       |   |                                | 49                                                      |   |   |   | 98 |   |
| Income (loss) from continuing operations                                                |   |                                | 8,027                                                   |   |   |   | (682 | ) |
| Adjustments to reconcile to net cash provided by (used in) operating activities:        |   |                                |                                                    |   |   |   |   |   |
| Depreciation and amortization                                                           |   |                                | 7,711                                                   |   |   |   | 4,940 |   |
| (Gain) loss on sale of fixed assets                                                     |   |                                | 203                                                     |   |   |   | (101 | ) |
| Equity-based compensation expense                                                       |   |                                | 1,518                                                   |   |   |   | 868 |   |
| Deferred income taxes                                                                   |   |                                | (390                                                    | ) |   |   | (903 | ) |
| (Income) loss from equity in earnings of affiliated companies                           |   |                                | (1,152                                                  | ) |   |   | 315 |   |
| Other                                                                                   |   |                                | (812                                                    | ) |   |   | (4,955 | ) |
| Changes in operating assets and liabilities:                                            |   |                                |                                                    |   |   |   |   |   |
| Restricted cash                                                                         |   |                                | (31                                                     | ) |   |   | 439 |   |
| Receivables net, retainage and costs and estimated earnings in excess of billings       |   |                                | (1,551                                                  | ) |   |   | (5,643 | ) |
| Inventories                                                                             |   |                                | (4,923                                                  | ) |   |   | 935 |   |
| Prepaid expenses and other assets                                                       |   |                                | (1,546                                                  | ) |   |   | 1,176 |   |
| Accounts payable and accrued expenses                                                   |   |                                | (4,741                                                  | ) |   |   | (152 | ) |
| Net cash provided by (used in) operating activities of continuing operations            |   |                                | 2,313                                                   |   |   |   | (3,763 | ) |
| Net cash provided by (used in) operating activities of discontinued operations          |   |                                | (409                                                    | ) |   |   | 1,571 |   |
| Net cash provided by (used in) operating activities                                     |   |                                | 1,904                                                   |   |   |   | (2,192 | ) |
|                                                                                    |   |                                |                                                    |   |   |   |   |   |
| Cash flows from investing activities:                                                   |   |                                |                                                    |   |   |   |   |   |
| Capital expenditures                                                                    |   |                                | (10,194                                                 | ) |   |   | (2,656 | ) |
| Proceeds from sale of fixed assets                                                      |   |                                | 151                                                     |   |   |   | 241 |   |
| Purchase of Singapore licensee                                                          |   |                                | (1,257                                                  | ) |   |   | – |   |
| Proceeds from net foreign investment hedges                                             |   |                                | –                                                 |   |   |   | 7,873 |   |
| Purchase of Bayou and Corrpro, net of cash acquired                                     |   |                                | –                                                 |   |   |   | (209,714 | ) |
| Net cash used in investing activities of continuing operations                          |   |                                | (11,300                                                 | ) |   |   | (204,256 | ) |
| Net cash provided by investing activities of discontinued operations                    |   |                                | –                                                 |   |   |   | 750 |   |
| Net cash used in investing activities                                                   |   |                                | (11,300                                                 | ) |   |   | (203,506 | ) |
|                                                                                    |   |                                |                                                    |   |   |   |   |   |
| Cash flows from financing activities:                                                   |   |                                |                                                    |   |   |   |   |   |
| Proceeds from issuance of common stock, including tax benefit of stock option exercises |   |                                | 2,006                                                   |   |   |   | 127,837 |   |
| Proceeds from notes payable                                                             |   |                                | –                                                 |   |   |   | 441 |   |
| Principal payments on notes payable                                                     |   |                                | (1,641                                                  | ) |   |   | (938 | ) |
| Investments from noncontrolling interests                                               |   |                                | 1,681                                                   |   |   |   | – |   |
| Proceeds from line of credit                                                            |   |                                | –                                                 |   |   |   | 7,500 |   |
| Principal payments on long-term debt                                                    |   |                                | (2,500                                                  | ) |   |   | – |   |
| Proceeds from long-term debt                                                            |   |                                | –                                                 |   |   |   | 50,000 |   |
| Net cash provided by (used in) financing activities                                     |   |                                | (454                                                    | ) |   |   | 184,840 |   |
| Effect of exchange rate changes on cash                                                 |   |                                | (993                                                    | ) |   |   | (992 | ) |
| Net decrease in cash and cash equivalents for the period                                |   |                                | (10,843                                                 | ) |   |   | (21,850 | ) |
| Cash and cash equivalents, beginning of period                                          |   |                                | 106,064                                                 |   |   |   | 99,321 |   |
| Cash and cash equivalents, end of period                                                |   |                                | $       95,221            |   |   |   | $       77,471 |   |
|                                                                                    |   |                                |                                                    |   |   |   |   |   |

----

| 1. |    GENERAL |
|----|----------------------|

----

|                 |   | Three Months Ended |   |
|----------------------|--------|--------------------|--------|
|                 |   | March 31,          |   |
|                 |   |    2010  |   |   |    2009 |   |
|                 |   |               |   |   |   |   |
| Revenues             |   |               | n/a    |   |   |   | $    179,205 |   |
| Net income (loss)(1) |   |               | n/a    |   |   |   | (19,018 | ) |

|   | (1) |  Includes $11.3 million of expense items related to after-tax acquisition-related costs incurred by the Company, Bayou and Corrpro and $8.2 million of after-tax expenses related to mark-to-market of Corrpro warrants prior to the acquisition, early termination fees and the write-off of deferred financing fees related to previously outstanding Corrpro debt. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                    |   |      Bayou |                                                                   |   |       Corrpro |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------------|------------------------------------------------------------------------|--------|----------------------------------------|--------|
| Cash                                                                                    |   |                           | $            68 |   |                                   |   | $      14,186 |   |
| Receivables and cost and estimated earnings in excess of billings                       |   |                           | 17,543                                                                 |   |                                   |   | 31,824 |   |
| Inventory                                                                               |   |                           | 3,349                                                                  |   |                                   |   | 10,498 |   |
| Prepaid expenses and other current assets                                               |   |                           | 556                                                                    |   |                                   |   | 2,886 |   |
| Property, plant and equipment                                                           |   |                           | 50,816                                                                 |   |                                   |   | 14,966 |   |
| Identified intangible assets                                                            |   |                           | 32,111                                                                 |   |                                   |   | 38,786 |   |
| Investments                                                                             |   |                           | 21,286                                                                 |   |                                   |   | – |   |
| Other assets                                                                            |   |                           | 59                                                                     |   |                                   |   | 11,169 |   |
| Accounts payable, accrued expenses and billings in excess of cost andestimated earnings |   |                           | (8,191                                                                 | )      |                                   |   | (30,747 | ) |
| Other long-term liabilities                                                             |   |                           | (8,002                                                                 | )      |                                   |   | (25,028 | ) |
| Total identifiable net assets                                                           |   |                           | $    109,595                                            |   |                                   |   | $      68,540 |   |
|                                                                                    |   |                           |                                                                   |   |                                   |   |   |   |
| Total consideration transferred                                                         |   |                           | $    140,697                                            |   |                                   |   | $      91,549 |   |
| Less:  total identifiable net assets                                          |   |                           | 109,595                                                                |   |                                   |   | 68,540 |   |
| Goodwill at acquisition date                                                            |   |                           | $      31,102                                 |   |                                   |   | $      23,009 |   |

----

|                                          |   |        March 31,         2010 |                                                                                                      |                     |   December 31, 2009 |    |
|-----------------------------------------------|--------|------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------------------------|------------------------------------|---------|
| Beginning balance                             |   |                                                                                           | $         180.5                                                   |                |                               |  $ | 123.0 |   |
| Additions to goodwill through acquisitions(1) |   |                                                                                           |                1.6                       |                     |                               |    |  57.5 |   |
| Other changes (2)                             |   |                                                                                           |                   – |                     |                               |    |       – |   |
| Goodwill at end of period                     |   |                                                                                           | $         182.1                                                        |      |                               |  $ |  180.5 |   |

|   | (1) | During 2010, the Company recorded goodwill of $1.6 million related to the acquisition of its licensee in Singapore, Insitu Envirotech (S.E. Asia) Pte Ltd. During 2009, the Company recorded goodwill of $54.1 million related to the acquisitions of Bayou and Corrpro and $3.4 million related to the acquisition of its joint venture partner’s interests in Insituform-Australia and Insituform-Hong Kong. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Company does not have any accumulated impairment charges. |
|--------|-----|---------------------------------------------------------------|

----

|   | • | determine whether the entity meets the criteria to qualify as a VIE; and |
|--------|---------|--------------------------------------------------------------------------|
|   | • | determine whether the Company is the primary beneficiary of the VIE.     |

|   | • | the design of the entity, including the nature of its risks and the purpose for which the entity was created, to determine the variability that the entity was designed to create and distribute to its interest holders; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | the nature of the Company’s involvement with the entity;                                                                                                                                                            |
|   | • | whether control of the entity may be achieved through arrangements that do not involve voting equity;                                                                                                                     |
|   | • | whether there is sufficient equity investment at risk to finance the activities of the entity; and                                                                                                                        |
|   | • | whether parties other than the equity holders have the obligation to absorb expected losses or the right to receive residual returns.                                                                                     |

|   | • | whether the entity has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance; and                                                                                                |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | whether the entity has the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. |

----

|                                                                                             |   | Three Months Ended                        |       |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|
|                                                                                             |   | March 31,                                 |       |
|                                                                                             |   |        2010 |       |   |        2009 |   |
| Weighted average number of common shares used for basic EPS                                      |   |                                      | 39,032,905 |   |   |   | 32,987,397 |   |
| Effect of dilutive stock options and restricted stock                                            |   |                                      | 348,889    |   |   |   | – |   |
| Weighted average number of common shares and dilutive potential common stock used indilutive EPS |   |                                      | 39,381,794 |   |   |   | 32,987,397 |   |

|                      |   |                                                                                                          |     |   | As of March 31, 2010                                                                     |   |                                                    | As of December 31, 2009             |   |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------|----------|--------|------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------------------------------|--------|
|                      |   |     Weighted    Average   Useful  Lives   (Years) |     |   |    Gross      Carrying     Amount |   |                                                    |  Accumulated Amortization |   |   |  Net    Carrying   Amount |   |   |   Gross   Carrying   Amount |   |   |  Accumulated Amortization |   |   |   Net   Carrying  Amount |   |
|                      |   |                                                                                                          |     |   |                                                                                     |   |                                                    |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| License agreements        |   |                                                                                                          | 10       |   |                                                                                     |   | $         3,894 |                                |   |   | $         (2,343 | ) |   |   | $        1,551 |   |   |   | $          3,894 |   |   |   | $        (2,302 | ) |   |   | $          1,592 |   |
| Contract backlog          |   |                                                                                                          |   1 |   |                                                                                     |   | 3,010                                                   |                                |   |   | (2,189 | ) |   |   | 821 |   |   |   | 3,010 |   |   |   | (1,737 | ) |   |   | 1,273 |   |
| Leases                    |   |                                                                                                          | 21       |   |                                                                                     |   | 1,237                                                   |                                |   |   | (57 | ) |   |   | 1,180 |   |   |   | 1,237 |   |   |   | (44 | ) |   |   | 1,193 |   |
| Trademarks and tradenames |   |                                                                                                          | 19       |   |                                                                                     |   | 14,400                                                  |                                |   |   | (749 | ) |   |   | 13,651 |   |   |   | 14,400 |   |   |   | (569 | ) |   |   | 13,831 |   |
| Non-compete agreements    |   |                                                                                                          |   1 |   |                                                                                     |   | 740                                                     |                                |   |   | (367 | ) |   |   | 373 |   |   |   | 740 |   |   |   | (257 | ) |   |   | 483 |   |
| Customer relationships    |   |                                                                                                          | 15       |   |                                                                                     |   | 53,307                                                  |                                |   |   | (4,090 | ) |   |   | 49,217 |   |   |   | 53,307 |   |   |   | (3,276 | ) |   |   | 50,031 |   |
| Patents                   |   |                                                                                                          | 17       |   |                                                                                     |   | 24,847                                                  |                                |   |   | (14,324 | ) |   |   | 10,523 |   |   |   | 24,173 |   |   |   | (14,265 | ) |   |   | 9,908 |   |
|    Total   |   |                                                                                                          |     |   |                                                                                     |   | $     101,435                       |                                |   |   | $       (24,119 | ) |   |   | $      77,316 |   |   |   | $      100,761 |   |   |   | $      (22,450 | ) |   |   | $        78,311 |   |

| Estimated amortization expense:   |   |   |   |
|-----------------------------------|--------|--------|--------|
| For year ending December 31, 2010 |   | $      | 6,064  |   |
| For year ending December 31, 2011 |   |   | 4,627  |   |
| For year ending December 31, 2012 |   |   | 4,464  |   |
| For year ending December 31, 2013 |   |   | 4,459  |   |
| For year ending December 31, 2014 |   |   | 4,460  |   |

----

----

|                               |   |              Stock                Awards |    |   |      Weighted     Average       Award Date       Fair Value |    |
|------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Outstanding at January 1, 2010     |   |                                                                                                                                                                  | 806,643 |   |                                                                                                                                                       |  $ |  13.64 |   |
| Restricted shares awarded          |   |                                                                                                                                                                  | 178,570 |   |                                                                                                                                                       |    |  22.87 |   |
| Restricted stock units awarded     |   |                                                                                                                                                                  | 8,917   |   |                                                                                                                                                       |    |  22.87 |   |
| Restricted shares distributed      |   |                                                                                                                                                                  | (12,600 | )      |                                                                                                                                                       |    |  12.84 |   |
| Restricted stock units distributed |   |                                                                                                                                                                  | (22,911 | )      |                                                                                                                                                       |    |  20.88 |   |
| Forfeited                          |   |                                                                                                                                                                  | (11,932 | )      |                                                                                                                                                       |    |  12.47 |   |
| Outstanding at March 31, 2010      |   |                                                                                                                                                                  | 946,687 |   |                                                                                                                                                       |  $ |  15.32 |   |

|                           |   |       Deferred      Stock       Units |                                                                  |   |    Weighted    Average       Award Date       Fair Value |    |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Outstanding at January 1, 2010 |   |                                                                                                                                 |  147,374                                                         |   |                                                                                                                                          |  $ |   18.22 |   |
| Awarded                        |   |                                                                                                                                 |             – |   |                                                                                                                                          |    |         – |   |
| Shares distributed             |   |                                                                                                                                 |             – |   |                                                                                                                                          |    |          – |   |
| Forfeited                      |   |                                                                                                                                 |             – |   |                                                                                                                                          |    |          – |   |
| Outstanding at March 31, 2010  |   |                                                                                                                                 | 147,374                                                               |   |                                                                                                                                          |  $ |   18.22 |   |

----

|                           |   |             Shares |      |   |         Weighted        Average        Exercise        Price |    |
|--------------------------------|--------|---------------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Outstanding at January 1, 2010 |   |                                                                      | 1,167,640 |   |                                                                                                                                                                                                     |  $ |  17.71 |   |
| Granted                        |   |                                                                      | 215,722   |   |                                                                                                                                                                                                     |    |  22.87 |   |
| Exercised                      |   |                                                                      | (102,954  | )      |                                                                                                                                                                                                     |    |  16.76 |   |
| Canceled/Expired               |   |                                                                      | (39,420   | )      |                                                                                                                                                                                                     |    |  25.52 |   |
| Outstanding at March 31, 2010  |   |                                                                      | 1,240,988 |   |                                                                                                                                                                                                     |    | 18.49 |   |
| Exercisable at March 31, 2010  |   |                                                                      | 672,116   |   |                                                                                                                                                                                                     |    | 19.77 |   |

|                  |   | For the Three Months Ended March 31, |                          |
|-----------------------|--------|--------------------------------------|-------------------------------|
|                  |   |   2010                          |                          |   |   2009 |   |
|                  |   |   Range                    |                          |   |    Weighted   Average |   |   |    Range |   |   |  Weighted   Average |   |
| Volatility            |   |                                 |    50.4%            |   |   |   |  50.4% |   |   |   |  50.1% |   |   |   |  50.1% |   |
| Expected term (years) |   |                                 |   7.0               |   |   |   | 7.0 |   |   |   | 7.0 |   |   |   | 7.0 |   |
| Dividend yield        |   |                                 |      0.0% |   |   |   |    0.0% |   |   |   |   0.0% |   |   |   |    0.0% |   |
| Risk-free rate        |   |                                 |      3.1% |   |   |   |    3.1% |   |   |   |   2.5% |   |   |   |    2.5% |   |

----

|                                                                                             |   |       Three Months Ended March 31,                         |                                                                          |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                                             |   |               2010 |                                                                          |   |             2009 |   |
| Beginning balance, January 1                                                                     |   |                                                                                | $             (97 | ) |   |   | $             7,161 |   |
| Expiration of prior hedges included in cumulative     translation adjustment |   |                                                                                | –                                                                       |   |   |   | (7,873 | ) |
| Gain included in other comprehensive income                                                      |   |                                                                                | (97                                                                           | ) |   |   | 941 |   |
| Ending balance, March 31                                                                         |   |                                                                                | $           (194            | ) |   |   | $                229 |   |

|                     |   |                2010 |                                                                                                |   |               2009 |   |
|--------------------------|--------|--------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                     |   |                                                                                 |                                                                                                |   |                                                                           |   |
| Revenues                 |   |                                                                                 | $                – |   |                                                                           |   | $                – |   |
| Gross profit (loss)      |   |                                                                                 | (12                                                                                                 | )      |                                                                           |   | 47 |   |
| Operating expenses       |   |                                                                                 | 61                                                                                                  |   |                                                                           |   | 197 |   |
| Operating loss           |   |                                                                                 | (73                                                                                                 | )      |                                                                           |   | (150 | ) |
| Loss before tax benefits |   |                                                                                 | (73                                                                                                 | )      |                                                                           |   | (150 | ) |
| Tax benefits             |   |                                                                                 | (24                                                                                                 | )      |                                                                           |   | (52 | ) |
| Net loss                 |   |                                                                                 | (49                                                                                                 | )      |                                                                           |   | (98 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                    |   |          March 31,          2010 |                                                                                     |   |   December 31,        2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                             |                                                                                     |   |                                                               |   |
| Receivables, net                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                             | $              21            |   |                                                               |   | $              21 |   |
| Retainage                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                             | 647                                                                                      |   |                                                               |   | 647 |   |
| Costs and estimated earnings in excess of billings                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                             | 521                                                                                      |   |                                                               |   | 521 |   |
| Property, plant and equipment, less accumulated depreciation                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                             | 1,283                                                                                    |   |                                                               |   | 1,283 |   |
| Deferred income tax assets                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                             | 2,919                                                                                    |   |                                                               |   | 3,000 |   |
|      Total assets                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                             | $         5,391                                       |   |                                                               |   | $         5,472 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                             |                                                                                     |   |                                                               |   |   |   |
| Accounts payable and accrued expenses and billings                                                  in excess of costs and estimated earnings |   |                                                                                                             | $                6 |   |                                                               |   | $           339 |   |
| Deferred income tax liabilities                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                             | 1,017                                                                                    |   |                                                               |   | 979 |   |
|      Total liabilities                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                             | $         1,023                                       |   |                                                               |   | $        1,318 |   |

----

|                                       |   | Three Months EndedMarch 31, |                                  |
|--------------------------------------------|--------|-----------------------------|---------------------------------------|
|                                       |   |    2010           |                                  |   |    2009 |   |
|                                       |   |                        |                                  |   |   |   |
| Revenues:                                  |   |                        |                                  |   |   |   |
|  North American Sewer Rehabilitation  |   |                        | $    89,114       |   |   |   | $    80,504 |   |
|  European Sewer Rehabilitation        |   |                        | 17,630                                |   |   |   | 18,207 |   |
|  Asia-Pacific Sewer Rehabilitation    |   |                        | 9,873                                 |   |   |   | 5,746 |   |
|  Water Rehabilitation                 |   |                        | 5,210                                 |   |   |   | 1,958 |   |
|  Energy and Mining                    |   |                        | 77,355                                |   |   |   | 21,597 |   |
| Total revenues                             |   |                        | $  199,182                  |   |   |   | $  128,012 |   |
|                                       |   |                        |                                  |   |   |   |   |   |
| Gross profit (loss):                       |   |                        |                                  |   |   |   |   |   |
|  North American Sewer Rehabilitation  |   |                        | $    21,078            |   |   |   | $    18,450 |   |
|  European Sewer Rehabilitation        |   |                        | 4,278                                 |   |   |   | 4,498 |   |
|  Asia-Pacific Sewer Rehabilitation    |   |                        | 1,555                                 |   |   |   | 2,054 |   |
|  Water Rehabilitation                 |   |                        | 660                                   |   |   |   | (175 | ) |
|  Energy and Mining                    |   |                        | 21,109                                |   |   |   | 5,846 |   |
| Total gross profit                         |   |                        | $    48,680            |   |   |   | $    30,673 |   |
|                                       |   |                        |                                  |   |   |   |   |   |
| Operating income (loss):                   |   |                        |                                  |   |   |   |   |   |
|  North American Sewer Rehabilitation  |   |                        | $      7,507 |   |   |   | $      5,821 |   |
|  European Sewer Rehabilitation        |   |                        | (35                                   | ) |   |   | (143 | ) |
|  Asia-Pacific Sewer Rehabilitation(1) |   |                        | (824                                  | ) |   |   | 1,262 |   |
|  Water Rehabilitation                 |   |                        | 131                                   |   |   |   | (1,230 | ) |
|  Energy and Mining(2) (3)             |   |                        | 5,727                                 |   |   |   | (5,631 | ) |
| Total operating income                     |   |                        | $    12,506            |   |   |   | $           79 |   |

|   | (1) | Asia-Pacific Sewer Rehabilitation included $(­­­­0.1) million of operating loss for the first quarter of 2010 related to the 62-day period following the acquisition of the Company’s Singapore licensee on January 29, 2010. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | $8.2 million of acquisition and severance costs were included in the operating loss of the Energy and Mining segment for the three months ended March 31, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Bayou contributed $0.3 million of operating income to this segment in the first quarter of 2009 during the 39-day period following its acquisition by the Company on February 20, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | Three Months EndedMarch 31, |    |
|-----------------------------------|--------|-----------------------------|---------|
|                              |   |   2010                 |    |   |   2009 |   |
|                              |   |                        |    |   |   |   |
| Revenues:                         |   |                        |    |   |   |   |
|   United States         |   | $                           | 130,288 |   |   | $ | 87,065 |   |
|   Canada                |   |                        | 31,516  |   |   |   | 11,718 |   |
|   Europe                |   |                        | 20,838  |   |   |   | 18,224 |   |
|   Other foreign         |   |                        | 16,540  |   |   |   | 11,005 |   |
| Total revenues                    |   | $                           | 199,182 |   |   | $ | 128,012 |   |
|                              |   |                        |    |   |   |   |   |   |
| Gross profit:                     |   |                        |    |   |   |   |   |   |
|   United States         |   | $                           | 31,964  |   |   | $ | 19,601 |   |
|   Canada                |   |                        | 8,774   |   |   |   | 3,213 |   |
|   Europe                |   |                        | 5,214   |   |   |   | 4,371 |   |
|   Other foreign         |   |                        | 2,728   |   |   |   | 3,488 |   |
| Total gross profit                |   | $                           | 48,680  |   |   | $ | 30,673 |   |
|                              |   |                        |    |   |   |   |   |   |
| Operating income (loss):          |   |                        |    |   |   |   |   |   |
|   United States (1) (2) |   | $                           | 5,353   |   |   | $ | (3,638 | ) |
|   Canada                |   |                        | 5,016   |   |   |   | 2,281 |   |
|   Europe                |   |                        | 1,546   |   |   |   | (522 | ) |
|   Other foreign(3)      |   |                        | 591     |   |   |   | 1,958 |   |
| Total operating income            |   | $                           | 12,506  |   |   | $ | 79 |   |

|   | (1) | $8.2 million of acquisition and severance costs were included in the operating loss of the United States region for the three months ended March 31, 2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Bayou contributed $0.3 million of operating income to this segment in the first quarter of 2009 during the 39-day period following its acquisition by the Company on February 20, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Other foreign operating income includes $(­­­­0.1) million of operating loss for the first quarter of 2010 related to the 62-day period following the acquisition of the Company’s Singapore licensee on January 29, 2010. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                           |   | Three Months Ended March 31,                    |                              |   |                    |   |                                    |                        |   |
|------------------------------------------------|--------|-------------------------------------------------|-----------------------------------|--------|-------------------------|--------|-----------------------------------------|-----------------------------|--------|
|                                           |   |         2010 |                              |   |     2009 |   |                                    |   $   Change |   |   |    %   Change |   |
|                                           |   |                                            |                              |   |                    |   |                                    |                        |   |   |   |   |
|  Revenues                                 |   |                                            | $     199,182 |   |                    |   | $      128,012 |                        |   |   | $       71,170 |   |   |   | 55.6 | % |
|  Gross profit                             |   |                                            | 48,680                            |   |                    |   | 30,673                                  |                        |   |   | 18,007 |   |   |   | 58.7 |   |
|  Gross margin                             |   |                                            | 24.4                              | %      |                    |   | 24.0                                    | %                           |   |   | n/a |   |   |   | 0.4 |   |
|  Operating expenses                       |   |                                            | 36,174                            |   |                    |   | 30,594                                  |                        |   |   | 5,580 |   |   |   | 18.2 |   |
|  Operating income                         |   |                                            | 12,506                            |   |                    |   | 79                                      |                        |   |   | 12,427 |   |   |   | 15,730.4 |   |
|  Operating margin                         |   |                                            | 6.3                               | %      |                    |   | 0.1                                     | %                           |   |   | n/a |   |   |   | 6.2 |   |
|  Income (loss) from continuing operations |   |                                            | 8,510                             |   |                    |   | (1,107                                  | )                           |   |   | 9,617 |   |   |   | 868.7 |   |

----

|                     |   | Three Months Ended March 31,              |                                         |   |                          |   |                                   |                  |   |
|--------------------------|--------|-------------------------------------------|----------------------------------------------|--------|-------------------------------|--------|----------------------------------------|-----------------------|--------|
|                     |   |        2010 |                                         |   |      2009 |   |                                   |    $ Change |   |   | % Change |   |
|                     |   |                                      |                                         |   |                          |   |                                   |                  |   |   |   |   |
|  Revenues           |   |                                      | $       89,114 |   |                          |   | $      80,504 |                  |   |   | $         8,610 |   |   |   | 10.7 | % |
|  Gross profit       |   |                                      | 21,078                                       |   |                          |   | 18,450                                 |                  |   |   | 2,628 |   |   |   | 14.2 |   |
|  Gross margin       |   |                                      | 23.7                                         | %      |                          |   | 22.9                                   | %                     |   |   | n/a |   |   |   | 0.8 |   |
|  Operating expenses |   |                                      | 13,571                                       |   |                          |   | 12,629                                 |                  |   |   | 942 |   |   |   | 7.5 |   |
|  Operating income   |   |                                      | 7,507                                        |   |                          |   | 5,821                                  |                  |   |   | 1,686 |   |   |   | 29.0 |   |
|  Operating margin   |   |                                      | 8.4                                          | %      |                          |   | 7.2                                    | %                     |   |   | n/a |   |   |   | 1.2 |   |

----

|                     |    | Three Months Ended March 31,                           |                                   |   |                                 |   |                                   |                   |   |
|--------------------------|--------------|--------------------------------------------------------|----------------------------------------|--------|--------------------------------------|--------|----------------------------------------|------------------------|--------|
|                     |         |           2010 |                                   |   |        2009 |   |                                   |     $ Change |   |   |   % Change |   |
|                     |         |                                                   |                                   |   |                                 |   |                                   |                   |   |   |   |   |
|  Revenues           |         |                                                   | $      17,630 |   |                                 |   | $      18,207 |                   |   |   | $         (577 | ) |   |   | (3.2 | )% |
|  Gross profit       |         |                                                   | 4,278                                  |   |                                 |   | 4,498                                  |                   |   |   | (220 | ) |   |   | (4.9 | ) |
|  Gross margin       |         |                                                   | 24.3                                   | %      |                                 |   | 24.7                                   | %                      |   |   | n/a |   |   |   | (0.4 | ) |
|  Operating expenses |         |                                                   | 4,313                                  |   |                                 |   | 4,641                                  |                   |   |   | (328 | ) |   |   | (7.1 | ) |
|  Operating loss     |         |                                                   | (35                                    | )      |                                 |   | (143                                   | )                      |   |   | (108 | ) |   |   | 75.6 |   |
|  Operating margin   |         |                                                   | (0.2                                   | )%     |                                 |   | (0.8                                   | )%                     |   |   | n/a |   |   |   | (0.6 | ) |

----

|                          |   |   Three Months Ended March 31,                          |                                   |   |                                       |   |                                        |                                     |   |
|-------------------------------|--------|-------------------------------------------------------------------|----------------------------------------|--------|--------------------------------------------|--------|---------------------------------------------|------------------------------------------|--------|
|                          |   |            2010 |                                   |   |         2009 |   |                                        |        $ Change |   |   |      % Change |   |
|                          |   |                                                              |                                   |   |                                       |   |                                        |                                     |   |   |   |   |
|  Revenues                |   |                                                              | $       9,873 |   |                                       |   | $       5,746 |                                     |   |   | $       4,127 |   |   |   | 71.8 | % |
|  Gross profit            |   |                                                              | 1,555                                  |   |                                       |   | 2,054                                       |                                     |   |   | (499 | ) |   |   | (24.3 | ) |
|  Gross margin            |   |                                                              | 15.8                                   | %      |                                       |   | 35.7                                        | %                                        |   |   | n/a |   |   |   | (19.9 | ) |
|  Operating expenses      |   |                                                              | 2,379                                  |   |                                       |   | 792                                         |                                     |   |   | 1,587 |   |   |   | 200.4 |   |
|  Operating income (loss) |   |                                                              | (824                                   | )      |                                       |   | 1,262                                       |                                     |   |   | (2,086 | ) |   |   | (165.3 | ) |
|  Operating margin        |   |                                                              | (8.3                                   | )%     |                                       |   | 22.0                                        | %                                        |   |   | n/a |   |   |   | (30.3 | ) |

----

|                          |   |         Three Months Ended March 31,                    |                                                          |   |                                                                |   |                                                          |                                                            |   |
|-------------------------------|--------|--------------------------------------------------------------------------------------------|---------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------------------------------------------------------------|--------|
|                          |   |                 2010 |                                                          |   |              2009 |   |                                                          |           $ Change |   |   |        % Change |   |
|                          |   |                                                                                       |                                                          |   |                                                                |   |                                                          |                                                            |   |   |   |   |
|  Revenues                |   |                                                                                       | $          5,210 |   |                                                                |   | $          1,958 |                                                            |   |   | $          3,252 |   |   |   | 166.1 | % |
|  Gross profit (loss)     |   |                                                                                       | 660                                                           |   |                                                                |   | (175                                                          | )                                                               |   |   | 835 |   |   |   | 477.1 |   |
|  Gross margin            |   |                                                                                       | 12.7                                                          | %      |                                                                |   | (8.9                                                          | )%                                                              |   |   | n/a |   |   |   | 21.6 |   |
|  Operating expenses      |   |                                                                                       | 529                                                           |   |                                                                |   | 1,055                                                         |                                                            |   |   | 526 |   |   |   | 49.9 |   |
|  Operating income (loss) |   |                                                                                       | 131                                                           |   |                                                                |   | (1,230                                                        | )                                                               |   |   | 1,361 |   |   |   | 110.7 |   |
|  Operating margin        |   |                                                                                       | 2.5                                                           | %      |                                                                |   | (62.8                                                         | )%                                                              |   |   | n/a |   |   |   | 65.3 |   |

----

|                            |   |         Three Months Ended March 31,                    |                                         |   |                                                        |   |                                         |                                                       |   |
|---------------------------------|--------|-------------------------------------------------------------------------------------------------|----------------------------------------------|--------|-------------------------------------------------------------|--------|----------------------------------------------|------------------------------------------------------------|--------|
|                            |   |                 2010 |                                         |   |           2009 |   |                                         |           $ Change |   |   |        % Change |   |
|                            |   |                                                                                            |                                         |   |                                                        |   |                                         |                                                       |   |   |   |   |
|  Revenues                  |   |                                                                                            | $       77,355 |   |                                                        |   | $       21,597 |                                                       |   |   | $        55,758 |   |   |   | 258.2 | % |
|  Gross profit              |   |                                                                                            | 21,109                                       |   |                                                        |   | 5,846                                        |                                                       |   |   | 15,263 |   |   |   | 261.1 |   |
|  Gross margin              |   |                                                                                            | 27.3                                         | %      |                                                        |   | 27.1                                         | %                                                          |   |   | n/a |   |   |   | 0.2 |   |
|  Acquisition-related costs |   |                                                                                            | –                                      |   |                                                        |   | 8,219                                        |                                                       |   |   | (8,219 | ) |   |   | (100.0 | ) |
|  Operating expenses        |   |                                                                                            | 15,382                                       |   |                                                        |   | 3,256                                        |                                                       |   |   | 12,126 |   |   |   | 372.4 |   |
|  Operating income (loss)   |   |                                                                                            | 5,727                                        |   |                                                        |   | (5,631                                       | )                                                          |   |   | 11,358 |   |   |   | 201.7 |   |
|  Operating margin          |   |                                                                                            | 7.4                                          | %      |                                                        |   | (26.1                                        | )%                                                         |   |   | n/a |   |   |   | 33.5 |   |

----

----

| Backlog                             |   |        March 31,            2010 |                                                    |   |  December 31,          2009 |   |                                                    |       March 31,          2009 |   |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|---------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|
| North American Sewer Rehabilitation |   |                                                                                                                  | $         208.6 |   |                                                                     |   | $         180.9 |                                                                                           |   |   | $           160.4 |   |
| European Sewer Rehabilitation       |   |                                                                                                                  | 24.7                                                    |   |                                                                     |   | 37.2                                                    |                                                                                           |   |   | 26.1 |   |
| Asia-Pacific Sewer Rehabilitation   |   |                                                                                                                  | 73.3                                                    |   |                                                                     |   | 57.4                                                    |                                                                                           |   |   | 40.1 |   |
| Water Rehabilitation                |   |                                                                                                                  | 2.9                                                     |   |                                                                     |   | 7.7                                                     |                                                                                           |   |   | 8.9 |   |
| Energy and Mining                   |   |                                                                                                                  | 187.6                                                   |   |                                                                     |   | 180.2                                                   |                                                                                           |   |   | 153.2 |   |
| Total                               |   |                                                                                                                  | $         497.1 |   |                                                                     |   | $         463.4 |                                                                                           |   |   | $           388.7 |   |

|                      |   |    March 31,     2010 |                                               |   | December 31,    2009 |   |
|---------------------------|--------|-----------------------------------------------------|----------------------------------------------------|--------|-------------------------------------|--------|
|                      |   | (in thousands)                                      |                                               |
| Cash and cash equivalents |   |                                                | $        95,221 |   |                                |   | $       106,064 |   |
| Restricted cash           |   |                                                | 1,331                                              |   |                                |   | 1,339 |   |

----

----

|                                                              Payments Due by Period  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Cash Obligations(1)(2)(3)(4)(5)                                                                                                                                                                                                                                                                                                                                                                            |   |            Total |   |   |            2010 |   |   |          2011 |   |   |           2012 |   |   |           2013 |   |   |        2014 |   |   |     Thereafter |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                             |   |   | $    109,000 |   |   |   | $       7,500 |   |   |   | $       10,000 |   |   |   | $       26,500 |   |   |   | $       65,000 |   |   |   | $                  - |   |   |   | $                - |   |
| Interest on long-term debt                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 17,790 |   |   |   | 5,477 |   |   |   | 5,548 |   |   |   | 4,640 |   |   |   | 2,125 |   |   |   | - |   |   |   | - |   |
| Operating leases                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 34,689 |   |   |   | 9,264 |   |   |   | 9,217 |   |   |   | 6,962 |   |   |   | 5,078 |   |   |   | 2,620 |   |   |   | 1,548 |   |
| Total contractual cash obligations                                                                                                                                                                                                                                                                                                                                                                         |   |   | $    161,479 |   |   |   | $    22,241 |   |   |   | $       24,765 |   |   |   | $       38,102 |   |   |   | $       72,203 |   |   |   | $          2,620 |   |   |   | $        1,548 |   |

| (1) | Cash obligations are not discounted. See Notes 5 to the consolidated financial statements contained in this report regarding our long-term debt and credit facility and commitments and contingencies, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We borrowed the entire amount of the $50.0 million term loan upon inception, of which $40.0 million was outstanding at March 31, 2010. We also had $22.7 million for non-interest bearing letters of credit outstanding as of March 31, 2010, $13.6 million of which was collateral for insurance, $1.7 million of which was collateral for work performance obligations, $4.5 million of which was for security in support of working capital and performance bonding needs for our operations in Australia and Hong Kong and $2.9 million of which was in support of international trade transactions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Liabilities related to Financial Accounting Standards Board Accounting Standards Codification 740, Income Taxes, have not been included in the table above because we are uncertain as to if or when such amounts may be settled. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | There were no material purchase commitments at March 31, 2010. |
|-----|----------------------------------------------------------------|

| (5) | The Corrpro pension funding was excluded from this table as the amounts are immaterial. |
|-----|-----------------------------------------------------------------------------------------|

----

|   | • | significant underperformance of a segment relative to expected, historical or projected future operating results; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

|   | • | significant negative industry or economic trends; |
|--------|---------|---------------------------------------------------|

|   | • | significant changes in the strategy for a segment including extended slowdowns in the sewer rehabilitation market; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

|   | • | a decrease in our market capitalization below our book value for an extended period of time. |
|--------|---------|----------------------------------------------------------------------------------------------|

|                                          |   |        March 31,              2010 |                                              |   |  December 31,            2009 |   |
|-----------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|
| Beginning balance                             |   |                                                                                                                              | $        180.5 |   |                                                                                      |   | $        123.0 |   |
| Additions to goodwill through acquisitions(1) |   |                                                                                                                              | 1.6                                               |   |                                                                                      |   | 57.5 |   |
| Other changes (2)                             |   |                                                                                                                              | –                                           |   |                                                                                      |   | – |   |
| Goodwill at end of period                     |   |                                                                                                                              | $        182.1 |   |                                                                                      |   | $        180.5 |   |

|   | (1) | During 2010, we recorded goodwill of $1.6 million related to the acquisition of Insituform-Singapore. During 2009, we recorded goodwill of $54.1 million related to the acquisitions of Bayou and Corrpro and $3.4 million related to the acquisition of our joint venture partner’s interests in Insituform-Australia and Insituform-Hong Kong. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | We do not have any accumulated impairment charges. |
|--------|-----|----------------------------------------------------|

|                                |   |        March 31,             2010 |                                              |   | December 31,        2009 |   |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|-------------------------------------------------------------|--------|
| North American Sewer Rehabilitation |   |                                                                                                                        | $        102.3 |   |                                                        |   | $        102.3 |   |
| European Sewer Rehabilitation       |   |                                                                                                                        | 19.8                                              |   |                                                        |   | 19.8 |   |
| Asia-Pacific Sewer Rehabilitation   |   |                                                                                                                        | 5.0                                               |   |                                                        |   | 3.4 |   |
| Energy and Mining                   |   |                                                                                                                        | 55.0                                              |   |                                                        |   | 55.0 |   |
| Total goodwill                      |   |                                                                                                                        | $        182.1 |   |                                                        |   | $        180.5 |   |

----

----

----

----

|   | INSITUFORM TECHNOLOGIES, INC.  |                                                                           |
|--------|-------------------------------------|--------------------------------------------------------------------------------|
|   |                                |                                                                           |   |
|   | By:                                 | /s/  David A. Martin                                                      |   |
|   |                                | David A. Martin                                                                |   |
|   |                                | Senior Vice President and Chief Financial Officer(Principal Financial Officer) |   |
|   |                                |                                                                           |   |

----

| 31.1 | Certification of J. Joseph Burgess pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|------|---------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of David A. Martin pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|------|-------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of J. Joseph Burgess pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification of David A. Martin pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|