----

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

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| PART I—FINANCIAL INFORMATION                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                   |   |
| Item 1.     Financial Statements:                                                                       |   |
|                                                                                                                   |   |
|  Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2009 and 2008                  | 3      |
|                                                                                                                   |   |
|  Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008                                            | 4      |
|                                                                                                                   |   |
|  Consolidated Statements of Equity for the Six Months Ended June 30, 2009 and 2008                                | 5      |
|                                                                                                                   |   |
|  Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2009 and 2008                            | 6      |
|                                                                                                                   |   |
|  Notes to Consolidated Financial Statements                                                                       | 7      |
|                                                                                                                   |   |
| Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21     |
|                                                                                                                   |   |
| Item 3.     Quantitative and Qualitative Disclosures About Market Risk                             | 36     |
|                                                                                                                   |   |
| Item 4.     Controls and Procedures                                                                | 37     |
|                                                                                                                   |   |
| PART II—OTHER INFORMATION                                                                                        |   |
|                                                                                                                   |   |
| Item 1.     Legal Proceedings                                                                      | 38     |
|                                                                                                                   |   |
| Item 1A.  Risk Factors                                                                                            | 38     |
|                                                                                                                   |   |
| Item 4.     Submission of Matters to a Vote of Security Holders                               | 38     |
|                                                                                                                   |   |
| Item 6.     Exhibits                                                                          | 38     |
|                                                                                                                   |   |
| SIGNATURE                                                                                                              | 39     |
|                                                                                                                   |   |
| INDEX TO EXHIBITS                                                                                                      | 40     |

----

CONSOLIDATED STATEMENTS OF OPERATIONS 

|                                                                             |   | For the Three Months Ended June 30,             |                                                                     |   | For the Six Months Ended June 30,               |   |
|----------------------------------------------------------------------------------|--------|-------------------------------------------------|--------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                             |   |         2009 |                                                                     |   |         2008 |   |   |         2009 |   |   |         2008 |   |
|                                                                             |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |
| Revenues                                                                         |   |                                            | $      183,196                                  |   |                                            |   | $      135,585 |   |   |   | $      311,208 |   |   |   | $      261,512 |   |
| Cost of revenues                                                                 |   |                                            | 135,280                                                                  |   |                                            |   | 104,455 |   |   |   | 232,619 |   |   |   | 203,496 |   |
| Gross profit                                                                     |   |                                            | 47,916                                                                   |   |                                            |   | 31,130 |   |   |   | 78,589 |   |   |   | 58,016 |   |
| Acquisition-related costs                                                        |   |                                            | –                                                                  |   |                                            |   | – |   |   |   | 8,219 |   |   |   | – |   |
| Operating expenses                                                               |   |                                            | 34,446                                                                   |   |                                            |   | 24,914 |   |   |   | 56,821 |   |   |   | 48,546 |   |
| Operating income                                                                 |   |                                            | 13,470                                                                   |   |                                            |   | 6,216 |   |   |   | 13,549 |   |   |   | 9,470 |   |
| Other income (expense):                                                          |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                  |   |                                            | (165                                                                     | )      |                                            |   | 739 |   |   |   | 184 |   |   |   | 1,587 |   |
| Interest expense                                                                 |   |                                            | (2,353                                                                   | )      |                                            |   | (1,158 | ) |   |   | (3,477 | ) |   |   | (2,385 | ) |
| Other                                                                            |   |                                            | 374                                                                      |   |                                            |   | 237 |   |   |   | 292 |   |   |   | 1,005 |   |
| Total other income (expense)                                                     |   |                                            | (2,144                                                                   | )      |                                            |   | (182 | ) |   |   | (3,001 | ) |   |   | 207 |   |
| Income before taxes on income                                                    |   |                                            | 11,326                                                                   |   |                                            |   | 6,034 |   |   |   | 10,548 |   |   |   | 9,677 |   |
| Taxes on income                                                                  |   |                                            | 3,157                                                                    |   |                                            |   | 1,732 |   |   |   | 2,745 |   |   |   | 2,806 |   |
| Income before equity in earnings (losses) of affiliated   companies    |   |                                            | 8,169                                                                    |   |                                            |   | 4,302 |   |   |   | 7,803 |   |   |   | 6,871 |   |
| Equity in earnings (losses) of affiliated companies,   net of tax      |   |                                            | 8                                                                        |   |                                            |   | (211 | ) |   |   | (307 | ) |   |   | (594 | ) |
| Income before discontinued operations                                            |   |                                            | 8,177                                                                    |   |                                            |   | 4,091 |   |   |   | 7,496 |   |   |   | 6,277 |   |
| Loss from discontinued operations, net of tax                                    |   |                                            | (1,192                                                                   | )      |                                            |   | (516 | ) |   |   | (1,290 | ) |   |   | (603 | ) |
| Net income                                                                       |   |                                            | 6,985                                                                    |   |                                            |   | 3,575 |   |   |   | 6,206 |   |   |   | 5,674 |   |
| Less:  net income attributable to noncontrolling   interests |   |                                            | 439                                                                      |   |                                            |   | 177 |   |   |   | 864 |   |   |   | 333 |   |
| Net income attributable to common stockholders                                   |   |                                            | $          6,546            |   |                                            |   | $          3,398 |   |   |   | $          5,342 |   |   |   | $          5,341 |   |
|                                                                             |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share attributable to common stockholders:                          |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                           |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                |   |                                            | $            0.20 |   |                                            |   | $            0.14 |   |   |   | $            0.18 |   |   |   | $            0.21 |   |
| Loss from discontinued operations                                                |   |                                            | (0.03                                                                    | )      |                                            |   | (0.02 | ) |   |   | (0.03 | ) |   |   | (0.02 | ) |
| Net income                                                                       |   |                                            | $            0.17 |   |                                            |   | $            0.12 |   |   |   | $            0.15 |   |   |   | $            0.19 |   |
| Diluted:                                                                         |   |                                            |                                                                     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                |   |                                            | $            0.20 |   |                                            |   | $            0.14 |   |   |   | $            0.18 |   |   |   | $            0.21 |   |
| Loss from discontinued operations                                                |   |                                            | (0.03                                                                    | )      |                                            |   | (0.02 | ) |   |   | (0.03 | ) |   |   | (0.02 | ) |
| Net income                                                                       |   |                                            | $            0.17 |   |                                            |   | $            0.12 |   |   |   | $            0.15 |   |   |   | $            0.19 |   |

----

CONSOLIDATED BALANCE SHEETS 

|                                                                                                                                                |   |      June 30,     2009 |                                                     |   |      December 31,     2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|----------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |
| Assets                                                                                                                                              |   |                                                           |                                                     |   |                                                               |   |
|  Current assets                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |
|      Cash and cash equivalents                                                                                             |   |                                                           | $         79,457 |   |                                                               |   | $        99,321 |   |
|      Restricted cash                                                                                                       |   |                                                           | 1,421                                                    |   |                                                               |   | 1,829 |   |
|  Receivables, net                                                                                                                              |   |                                                           | 129,229                                                  |   |                                                               |   | 97,257 |   |
|  Retainage                                                                                                                                     |   |                                                           | 19,044                                                   |   |                                                               |   | 21,380 |   |
|  Costs and estimated earnings in excess of billings                                                                                            |   |                                                           | 60,624                                                   |   |                                                               |   | 37,224 |   |
|  Inventories                                                                                                                                   |   |                                                           | 32,727                                                   |   |                                                               |   | 16,320 |   |
|  Prepaid expenses and other assets                                                                                                             |   |                                                           | 31,324                                                   |   |                                                               |   | 37,637 |   |
|  Current assets of discontinued operations                                                                                                     |   |                                                           | 9,004                                                    |   |                                                               |   | 13,704 |   |
|  Total current assets                                                                                                                          |   |                                                           | 362,830                                                  |   |                                                               |   | 324,672 |   |
|  Property, plant and equipment, less accumulated depreciation                                                                                  |   |                                                           | 140,128                                                  |   |                                                               |   | 71,423 |   |
|  Other assets                                                                                                                                  |   |                                                           |                                                     |   |                                                               |   |   |   |
|  Goodwill                                                                                                                                      |   |                                                           | 188,443                                                  |   |                                                               |   | 122,961 |   |
|  Identified intangible assets, less accumulated amortization                                                                                   |   |                                                           | 80,448                                                   |   |                                                               |   | 10,353 |   |
|  Investments in affiliated companies                                                                                                           |   |                                                           | 27,965                                                   |   |                                                               |   | 6,769 |   |
|  Other assets                                                                                                                                  |   |                                                           | 19,307                                                   |   |                                                               |   | 7,285 |   |
|  Total other assets                                                                                                                            |   |                                                           | 316,163                                                  |   |                                                               |   | 147,368 |   |
|  Non-current assets of discontinued operations                                                                                                 |   |                                                           | 5,357                                                    |   |                                                               |   | 5,843 |   |
|                                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |   |   |
| Total Assets                                                                                                                                        |   |                                                           | $       824,478            |   |                                                               |   | $      549,306 |   |
|                                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |   |   |
| Liabilities and Equity                                                                                                                              |   |                                                           |                                                     |   |                                                               |   |   |   |
|  Current liabilities                                                                                                                           |   |                                                           |                                                     |   |                                                               |   |   |   |
|      Accounts payable and accrued expenses                                                                                 |   |                                                           | $       129,493            |   |                                                               |   | $        97,593 |   |
|      Billings in excess of costs and estimated earnings                                                                    |   |                                                           | 7,553                                                    |   |                                                               |   | 9,596 |   |
|      Current maturities of long-term debt and line of credit                                                               |   |                                                           | 17,500                                                   |   |                                                               |   | – |   |
|      Notes payable                                                                                                         |   |                                                           | 3,880                                                    |   |                                                               |   | 938 |   |
|      Current liabilities of discontinued operations                                                                        |   |                                                           | 1,402                                                    |   |                                                               |   | 1,541 |   |
|  Total current liabilities                                                                                                                     |   |                                                           | 159,828                                                  |   |                                                               |   | 109,668 |   |
|  Long-term debt, less current maturities                                                                                                       |   |                                                           | 102,500                                                  |   |                                                               |   | 65,000 |   |
|  Other liabilities                                                                                                                             |   |                                                           | 50,802                                                   |   |                                                               |   | 2,831 |   |
|  Non-current liabilities of discontinued operations                                                                                            |   |                                                           | 509                                                      |   |                                                               |   | 818 |   |
|  Total liabilities                                                                                                                             |   |                                                           | 313,639                                                  |   |                                                               |   | 178,317 |   |
|                                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |   |   |
|  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      38,829,963 and 27,977,785 |   |                                                           | 388                                                      |   |                                                               |   | 280 |   |
|  Additional paid-in capital                                                                                                                    |   |                                                           | 240,529                                                  |   |                                                               |   | 109,235 |   |
|  Retained earnings                                                                                                                             |   |                                                           | 265,958                                                  |   |                                                               |   | 260,616 |   |
|  Accumulated other comprehensive loss                                                                                                          |   |                                                           | (159                                                     | )      |                                                               |   | (2,154 | ) |
|  Total stockholders’ equity before noncontrolling interests                                                                              |   |                                                           | 506,716                                                  |   |                                                               |   | 367,977 |   |
|      Noncontrolling interests                                                                                              |   |                                                           | 4,123                                                    |   |                                                               |   | 3,012 |   |
|  Total equity                                                                                                                                  |   |                                                           | 510,839                                                  |   |                                                               |   | 370,989 |   |
|                                                                                                                                                |   |                                                           |                                                     |   |                                                               |   |   |   |
| Total Liabilities and Equity                                                                                                                        |   |                                                           | $       824,478            |   |                                                               |   | $      549,306 |   |

----

CONSOLIDATED STATEMENTS OF EQUITY 

|                                                                      |   |           Common Stock            Shares                  Amount |       |   | AdditionalPaid-InCapital |   |                                                  |  RetainedEarnings |   |   | Accumulated OtherComprehensiveIncome (Loss) |   |   | Non-controlling Interests |                  |   |  TotalEquity |   |                                                               |  ComprehensiveIncome |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|--------------------------|--------|-------------------------------------------------------|------------------------|--------|--------|--------------------------------------------------|--------|--------|---------------------------|-----------------------|--------|-------------------|--------|--------------------------------------------------------------------|---------------------------|--------|
| BALANCE, December 31, 2007                                                |   |                                                                                                                                                                                                                                                 | 27,470,623 |   |                     |   | $         275 |                   |   |   | $   104,332                            |   |   |                      | $   238,976 |   |              |   | $          8,958      |                      |   |   | $      2,717 |   |   |   | $    355,258 |   |   |   |   |
| Net income                                                                |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | 5,341                 |   |              |   | –                                                            |                      |   |   | 333 |   |   |   | 5,674 |   |   |   | $        5,674 |   |
| Issuance of common stock                                                  |   |                                                                                                                                                                                                                                                 | 14,200     |   |                     |   | –                                               |                   |   |   | 76                                               |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 76 |   |   |   |   |   |
| Restricted stock units issued                                             |   |                                                                                                                                                                                                                                                 | 442,553    |   |                     |   | 5                                                     |                   |   |   | –                                          |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 5 |   |   |   |   |   |
| Distribution of shares pursuant to deferred stock unit awards             |   |                                                                                                                                                                                                                                                 | 27,382     |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | – |   |   |   | – |   |
| Amortization and forfeitures of restricted stock shares and units         |   |                                                                                                                                                                                                                                                 | (13,839    | )      |                     |   | (1                                                    | )                      |   |   | (13                                              | )      |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | (14 | ) |   |   | – |   |
| Equity-based compensation expense                                         |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | 2,789                                            |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 2,789 |   |   |   | – |   |
| Derivative instruments                                                    |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | –               |   |              |   | (207                                                               | )                         |   |   | – |   |   |   | (207 | ) |   |   | (207 | ) |
| Foreign currency translation adjustment                                   |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | 1                     |   |              |   | 1,079                                                              |                      |   |   | 151 |   |   |   | 1,231 |   |   |   | 1,231 |   |
| Total comprehensive income                                                |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   | 6,698 |   |
| Less: total comprehensive income attributable to noncontrolling interests |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   |   484 |   |
| Total comprehensive income attributable to common stockholders            |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   | $        6,214 |   |
| BALANCE, June 30, 2008                                                    |   |                                                                                                                                                                                                                                                 | 27,940,919 |   |                     |   | $         279 |                   |   |   | $   107,184                            |   |   |                      | $   244,318 |   |              |   | $         9,830            |                      |   |   | $      3,201 |   |   |   | $    364,812 |   |   |   |   |   |
|                                                                      |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, December 31, 2008                                                |   |                                                                                                                                                                                                                                                 | 27,977,785 |   |                     |   | $         280 |                   |   |   | $   109,235                            |   |   |                      | $   260,616 |   |              |   | $        (2,154                 | )                         |   |   | $      3,012 |   |   |   | $    370,989 |   |   |   |   |   |
| Net income                                                                |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | 5,342                 |   |              |   | –                                                            |                      |   |   | 864 |   |   |   | 6,206 |   |   |   | $        6,206 |   |
| Issuance of common stock                                                  |   |                                                                                                                                                                                                                                                 | 10,499,766 |   |                     |   | 105                                                   |                   |   |   | 128,995                                          |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 129,100 |   |   |   | – |   |
| Restricted stock units issued                                             |   |                                                                                                                                                                                                                                                 | 394,660    |   |                     |   | 4                                                     |                   |   |   | –                                          |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 4 |   |   |   | – |   |
| Amortization and forfeitures of restricted stock shares and units         |   |                                                                                                                                                                                                                                                 | (42,248    | )      |                     |   | (1                                                    | )                      |   |   | –                                          |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | (1 | ) |   |   | – |   |
| Equity-based compensation expense                                         |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | 2,299                                            |   |   |                      | –               |   |              |   | –                                                            |                      |   |   | – |   |   |   | 2,299 |   |   |   | – |   |
| Derivative instruments                                                    |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   | (1,208                                                             | )                         |   |   |   |   |   |   | (1,208 | ) |   |   | (1,208 | ) |
| Foreign currency translation adjustment                                   |   |                                                                                                                                                                                                                                                 | –    |   |                     |   | –                                               |                   |   |   | –                                          |   |   |                      | –               |   |              |   | 3,203                                                              |                      |   |   | 247 |   |   |   | 3,450 |   |   |   | 3,450 |   |
| Total comprehensive income                                                |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   | 8,448 |   |
| Less: total comprehensive income attributable to noncontrolling interests |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   |   1,111 |   |
| Total comprehensive income attributable to common stockholders            |   |                                                                                                                                                                                                                                                 |       |   |                     |   |                                                  |                   |   |   |                                             |   |   |                      |                  |   |              |   |                                                               |                      |   |   |   |   |   |   |   |   |   |   | $        7,337 |   |
| BALANCE, June 30, 2009                                                    |   |                                                                                                                                                                                                                                                 | 38,829,963 |   |                     |   | $         388 |                   |   |   | $   240,529                            |   |   |                      | $   265,958 |   |              |   | $           (159 | )                         |   |   | $      4,123 |   |   |   | $    510,839 |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS 

|                                                                              |   |       For the Six Months       Ended June 30, |                                                    |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
|                                                                              |   |         2009                                                      |                                                    |   |         2008 |   |
|                                                                              |   |                                                                                                 |                                                    |   |   |   |
| Cash flows from operating activities:                                             |   |                                                                                                 |                                                    |   |   |   |
| Net income                                                                        |   |                                                                                                 | $         6,206 |   |   |   | $          5,476 |   |
| Loss from discontinued operations                                                 |   |                                                                                                 | (1,290                                                  | ) |   |   | (603 | ) |
| Income from continuing operations                                                 |   |                                                                                                 | 7,496                                                   |   |   |   | 6,277 |   |
| Adjustments to reconcile to net cash provided by operating activities:            |   |                                                                                                 |                                                    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                                                                                                 | 12,112                                                  |   |   |   | 8,263 |   |
| (Gain) on sale of fixed assets                                                    |   |                                                                                                 | (215                                                    | ) |   |   | (732 | ) |
| Income attributable to noncontrolling interests                                   |   |                                                                                                 | (864                                                    | ) |   |   | (333 | ) |
| Equity-based compensation expense                                                 |   |                                                                                                 | 2,299                                                   |   |   |   | 2,789 |   |
| Deferred income taxes                                                             |   |                                                                                                 | (211                                                    | ) |   |   | 2,130 |   |
| Other                                                                             |   |                                                                                                 | (6,364                                                  | ) |   |   | (6,159 | ) |
| Changes in operating assets and liabilities:                                      |   |                                                                                                 |                                                    |   |   |   |   |   |
| Restricted cash                                                                   |   |                                                                                                 | 503                                                     |   |   |   | (138 | ) |
| Receivables net, retainage and costs and estimated earnings in excess of billings |   |                                                                                                 | (1,366                                                  | ) |   |   | (4,435 | ) |
| Inventories                                                                       |   |                                                                                                 | (1,596                                                  | ) |   |   | 321 |   |
| Prepaid expenses and other assets                                                 |   |                                                                                                 | 5,454                                                   |   |   |   | 872 |   |
| Accounts payable and accrued expenses                                             |   |                                                                                                 | (11,883                                                 | ) |   |   | 3,891 |   |
| Net cash provided by operating activities of continuing operations                |   |                                                                                                 | 5,365                                                   |   |   |   | 12,746 |   |
| Net cash provided by operating activities of discontinued operations              |   |                                                                                                 | 2,295                                                   |   |   |   | 1,223 |   |
| Net cash provided by operating activities                                         |   |                                                                                                 | 7,660                                                   |   |   |   | 13,969 |   |
|                                                                              |   |                                                                                                 |                                                    |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |                                                                                                 |                                                    |   |   |   |   |   |
| Capital expenditures                                                              |   |                                                                                                 | (10,440                                                 | ) |   |   | (6,872 | ) |
| Proceeds from sale of fixed assets                                                |   |                                                                                                 | 410                                                     |   |   |   | 1,304 |   |
| Proceeds from net foreign investment hedges                                       |   |                                                                                                 | 7,873                                                   |   |   |   | – |   |
| Purchase of IAL and IPPL                                                          |   |                                                                                                 | (278                                                    | ) |   |   |   |   |
| Purchase of Bayou and Corrpro, net of cash acquired                               |   |                                                                                                 | (209,714                                                | ) |   |   | – |   |
| Net cash used in investing activities of continuing operations                    |   |                                                                                                 | (212,149                                                | ) |   |   | (5,568 | ) |
| Net cash provided by investing activities of discontinued operations              |   |                                                                                                 | 750                                                     |   |   |   | 1,338 |   |
| Net cash used in investing activities                                             |   |                                                                                                 | (211,399                                                | ) |   |   | (4,230 | ) |
|                                                                              |   |                                                                                                 |                                                    |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |                                                                                                 |                                                    |   |   |   |   |   |
| Proceeds from issuance of common stock                                            |   |                                                                                                 | 127,837                                                 |   |   |   | 256 |   |
| Proceeds from notes payable                                                       |   |                                                                                                 | –                                                 |   |   |   | 700 |   |
| Principal payments on notes payable                                               |   |                                                                                                 | (938                                                    | ) |   |   | (1,284 | ) |
| Principal payments on long-term debt                                              |   |                                                                                                 | (2,500                                                  | ) |   |   | – |   |
| Net proceeds from line of credit                                                  |   |                                                                                                 | 7,500                                                   |   |   |   | – |   |
| Proceeds from long-term debt                                                      |   |                                                                                                 | 50,000                                                  |   |   |   | – |   |
| Net cash provided by (used in) financing activities                               |   |                                                                                                 | 181,899                                                 |   |   |   | (328 | ) |
| Effect of exchange rate changes on cash                                           |   |                                                                                                 | 1,976                                                   |   |   |   | 4,840 |   |
| Net increase (decrease) in cash and cash equivalents for the period               |   |                                                                                                 | (19,864                                                 | ) |   |   | 14,251 |   |
| Cash and cash equivalents, beginning of period                                    |   |                                                                                                 | 99,321                                                  |   |   |   | 78,961 |   |
| Cash and cash equivalents, end of period                                          |   |                                                                                                 | $       79,457            |   |   |   | $        93,212 |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

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

----

|                 |   | Three Months Ended |                              |   | Six Months Ended  |   |
|----------------------|--------|--------------------|-----------------------------------|--------|-------------------|--------|
|                 |   | June 30,           |                              |   | June 30,          |   |
|                 |   |    2009  |                              |   |    2008 |   |   |      2009 (2) |   |   |     2008 |   |
|                 |   |               |                              |   |              |   |   |   |   |   |   |   |
| Revenues             |   |               | $     183,196 |   |              |   | $     219,134 |   |   |   | $     362,401 |   |   |   | $     415,245 |   |
| Net income (loss)(1) |   |               | 6,546                             |   |              |   | 10,395 |   |   |   | (12,472 | ) |   |   | 16,162 |   |

|   | (1) | Includes amortization of identified intangibles and depreciation of the excess of fair value of acquired fixed assets over their pre-acquired recorded value from purchase price allocation. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes non-recurring items related to $11.3 million of 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 and repayment of debt                                                          |   |               | $      132,419 |   |                       |   | $      91,549 |   |
| Issuance of Insituform shares to Bayou’s noncontrolling interest shareholders |   |               | 2,500                                   |   |                       |   | – |   |
| Six-month note payable to noncontrolling interest shareholders                      |   |               | 1,500                                   |   |                       |   | – |   |
| Estimated earnout payments to Bayou shareholders                               |   |               | 5,000                                   |   |                       |   | – |   |
| Total consideration transferred                                                     |   |               | $      141,419 |   |                       |   | $      91,549 |   |

----

|                                                                                     |   | Bayou  |                                                                          |   | Corrpro |   |
|------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|---------|--------|
| Cash                                                                                     |   |   | $              68 |   |    |   | $        14,186 |   |
| Receivables and cost and estimated earnings in excess of billings                        |   |   | 13,526                                                                        |   |    |   | 31,824 |   |
| Inventory                                                                                |   |   | 3,294                                                                         |   |    |   | 10,498 |   |
| Prepaid expenses and other current assets                                                |   |   | 2,842                                                                         |   |    |   | 2,538 |   |
| Property, plant and equipment                                                            |   |   | 50,816                                                                        |   |    |   | 15,275 |   |
| Identified intangible assets                                                             |   |   | 32,111                                                                        |   |    |   | 38,786 |   |
| Investments                                                                              |   |   | 21,643                                                                        |   |    |   | – |   |
| Other assets                                                                             |   |   | 1,090                                                                         |   |    |   | 1,316 |   |
| Accounts payable, accrued expenses and billings in excess of cost and estimated earnings |   |   | (8,003                                                                        | )      |    |   | (26,262 | ) |
| Other long-term liabilities                                                              |   |   | (14,277                                                                       | )      |    |   | (20,393 | ) |
| Total identifiable net assets                                                            |   |   | 103,110                                                                       |   |    |   | 67,768 |   |
|                                                                                     |   |   |                                                                          |   |    |   |   |   |
| Total consideration transferred                                                          |   |   | $     141,419                                             |   |    |   | $        91,549 |   |
| Less:  total identifiable net assets                                           |   |   | 103,110                                                                       |   |    |   | 67,768 |   |
| Goodwill at March 31, 2009                                                               |   |   | 38,309                                                                        |   |    |   | 23,781 |   |
|                                                                                     |   |   |                                                                          |   |    |   |   |   |

|                                                    |   |       Bayou |                              |   |       Corrpro |   |
|---------------------------------------------------------|--------|--------------------------------------|-----------------------------------|--------|----------------------------------------|--------|
| Total identifiable net assets at March 31, 2009         |   |                                 | $     114,809 |   |                                   |   | $        62,039 |   |
| Inventory                                               |   |                                 | (100                              | )      |                                   |   | (1,366 | ) |
| Property, plant and equipment                           |   |                                 | (61                               | )      |                                   |   | 4,768 |   |
| Identifiable intangible assets                          |   |                                 | 490                               |   |                                   |   | 5,436 |   |
| Investments                                             |   |                                 | (11,457                           | )      |                                   |   | – |   |
| Other adjustments to working capital                    |   |                                 | (571                              | )      |                                   |   | (3,109 | ) |
| Total identifiable net assets at June 30, 2009          |   |                                 | 103,110                           |   |                                   |   | 67,768 |   |
|                                                    |   |                                 |                              |   |                                   |   |   |   |
| Goodwill at March 31, 2009                              |   |                                 | 26,610                            |   |                                   |   | 29,510 |   |
| Increase (decrease) in goodwill related to acquisitions |   |                                 | 11,699                            |   |                                   |   | (5,729 | ) |
| Goodwill at June 30, 2009                               |   |                                 | 38,309                            |   |                                   |   | 23,781 |   |
|                                                    |   |                                 |                              |   |                                   |   |   |   |

----

----

|                                                                                              |   |   Three Months Ended                  |       |   | Six Months Ended                          |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|-------------------------------------------|--------|
|                                                                                              |   |   June 30,                            |       |   | June 30,                                  |   |
|                                                                                              |   |         2009 |       |   |        2008 |   |   |         2009 |   |   |        2008 |   |
| Weighted average number of common shares used for basic EPS                                       |   |                                       | 38,466,050 |   |                                      |   | 27,572,992 |   |   |   | 35,741,858 |   |   |   | 27,521,807 |   |
| Effect of dilutive stock options and restricted stock                                             |   |                                       | 690,884    |   |                                      |   | 753,448 |   |   |   | 680,371 |   |   |   | 600,402 |   |
| Weighted average number of common shares and dilutive potential common stock used in dilutive EPS |   |                                       | 39,156,934 |   |                                      |   | 28,326,440 |   |   |   | 36,422,229 |   |   |   | 28,122,209 |   |

----

|                      |   |                                                                                    |   |   | As of June 30, 2009                             |   |                                                                | As of December 31, 2008               |   |
|---------------------------|--------|-----------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|---------------------------------------------------------------------|---------------------------------------|--------|
|                      |   |     Weighted    Average   Useful Lives  (Years) |   |   |   Gross   Carrying   Amount |   |                                                                |   Accumulated  Amortization |   |   |   Net   Carrying  Amount |   |   |   Gross   Carrying  Amount |   |   |   Accumulated  Amortization |   |   |   Net   Carrying  Amount |   |
|                      |   |                                                                                    |   |   |                                            |   |                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| License agreements        |   |                                                                                    | 11     |   |                                            |   | $           3,894 |                                  |   |   | $        (2,221 | ) |   |   | $           1,673 |   |   |   | $         3,894 |   |   |   | $         (2,139 | ) |   |   | $          1,755 |   |
| Contract backlog          |   |                                                                                    | 1      |   |                                            |   | 3,010                                                               |                                  |   |   | (627 | ) |   |   | 2,383 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Leases                    |   |                                                                                    | 22     |   |                                            |   | 1,237                                                               |                                  |   |   | (19 | ) |   |   | 1,218 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Trademarks and tradenames |   |                                                                                    | 20     |   |                                            |   | 14,400                                                              |                                  |   |   | (207 | ) |   |   | 14,193 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Non-compete agreements    |   |                                                                                    | 2      |   |                                            |   | 740                                                                 |                                  |   |   | (90 | ) |   |   | 650 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Customer relationships    |   |                                                                                    | 16     |   |                                            |   | 53,307                                                              |                                  |   |   | (1,643 | ) |   |   | 51,664 |   |   |   | 1,797 |   |   |   | (633 | ) |   |   | 1,164 |   |
| Patents                   |   |                                                                                    | 16     |   |                                            |   | 22,837                                                              |                                  |   |   | (14,170 | ) |   |   | 8,667 |   |   |   | 21,431 |   |   |   | (13,997 | ) |   |   | 7,434 |   |
| Total                     |   |                                                                                    |   |   |                                            |   | $         99,425            |                                  |   |   | $      (18,977 | ) |   |   | $         80,448 |   |   |   | $       27,122 |   |   |   | $       (16,769 | ) |   |   | $        10,353 |   |

|                              |   |   2009 |   |
|-----------------------------------|--------|-------------|--------|
| Estimated amortization expense:   |   |        |   |
| For year ending December 31, 2009 |   |        | 5,806  |   |
| For year ending December 31, 2010 |   |        | 6,464  |   |
| For year ending December 31, 2011 |   |        | 6,242  |   |
| For year ending December 31, 2012 |   |        | 4,718  |   |
| For year ending December 31, 2013 |   |        | 4,707  |   |

----

|                           |   | Restricted Awards |    |   | WeightedAverageAward DateFair Value |   |
|--------------------------------|--------|-------------------|---------|--------|-------------------------------------|--------|
| Outstanding at January 1, 2009 |   |              | 475,787 |   |                                |   | $        14.25 |   |
| Awarded                        |   |              | 394,660 |   |                                |   | 12.92 |   |
| Shares distributed             |   |              | (22,588 | )      |                                |   | 20.09 |   |
| Forfeited                      |   |              | (19,021 | )      |                                |   | 13.69 |   |
| Outstanding at June 30, 2009   |   |              | 828,838 |   |                                |   | $      13.47 |   |

----

|                           |   |     Deferred    Stock    Units |    |   |     Weighted    Average    Award Date    Fair Value |   |
|--------------------------------|--------|-------------------------------------------------------------------|---------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
| Outstanding at January 1, 2009 |   |                                                              | 130,018 |   |                                                                                                            |   | $        18.46 |   |
| Awarded                        |   |                                                              | 29,970  |   |                                                                                                            |   | 16.25 |   |
| Shares distributed             |   |                                                              | – |   |                                                                                                            |   | – |   |
| Forfeited                      |   |                                                              | – |   |                                                                                                            |   | – |   |
| Outstanding at June 30, 2009   |   |                                                              | 159,988 |   |                                                                                                            |   | 18.04 |   |

|                                    |   |     Shares |      |   |     Weighted    Average    Exercise    Price |   |
|-----------------------------------------|--------|---------------------------|-----------|--------|----------------------------------------------------------------------------------------------------------|--------|
| Outstanding at January 1, 2009          |   |                      | 1,032,773 |   |                                                                                                     |   | $       19.18 |   |
| Granted                                 |   |                      | 327,363   |   |                                                                                                     |   | 12.88 |   |
| Exercised                               |   |                      | (750      | )      |                                                                                                     |   | 14.65 |   |
| Canceled/Expired                        |   |                      | (82,358   | )      |                                                                                                     |   | 17.91 |   |
| Outstanding at  June 30, 2009 |   |                      | 1,277,028 |   |                                                                                                     |   | 17.65 |   |
| Exercisable at June 30, 2009            |   |                      | 734,137   |   |                                                                                                     |   | 20.68 |   |

----

|                  |   | For the Six Months Ended June 30, |               |
|-----------------------|--------|-----------------------------------|--------------------|
|                  |   | 2009                              |               |   | 2008 |   |
|                  |   |   Range                      |               |   |   Weighted  Average |   |   |   Range |   |   |   Weighted  Average |   |
| Volatility            |   |                              | 49.5% – 50.1 | % |   |   | 50.1 | % |   |   | 37.3% – 41.9 | % |   |   | 40.6 | % |
| Expected term (years) |   |                              | 7.0                |   |   |   | 7.0 |   |   |   | 4.5 |   |   |   | 4.5 |   |
| Dividend yield        |   |                              | 0.0                | % |   |   | 0.0 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Risk-free rate        |   |                              | 2.5% – 3.2   | % |   |   | 2.5 | % |   |   | 4.4%–4.6 | % |   |   | 4.4 | % |

----

----

|           |     |   |            |      |   |   Weighted  |   |   |            |   |
|----------------|----------|--------|-----------------|-----------|--------|------------------|--------|--------|-----------------|--------|
|           |     |   |            |      |   |   Average   |   |   |            |   |
|           |     |   |            |      |   |   Remaining |   |   |   Average  |   |
|           |     |   |   Notional |      |   |   Maturity  |   |   |   Exchange |   |
|           | Position |   |   Amount   |      |   |   in Months |   |   |   Rate     |   |
| Euro           | Sell     |   | €         | 5,000,000 |   |             |   | 0.2    |            |   |   | 1.28 |   |
| Pound Sterling | Sell     |   | £          | 5,000,000 |   |             |   | 0.2    |            |   |   | 1.53 |   |

|            |     |   |            |       |   |   Weighted  |   |   |            |   |
|-----------------|----------|--------|-----------------|------------|--------|------------------|--------|--------|-----------------|--------|
|            |     |   |            |       |   |   Average   |   |   |            |   |
|            |     |   |            |       |   |   Remaining |   |   |   Average  |   |
|            |     |   |   Notional |       |   |   Maturity  |   |   |   Exchange |   |
|            | Position |   |   Amount   |       |   |   in Months |   |   |   Rate     |   |
| Canadian Dollar | Sell     |   | $               | 13,500,000 |   |             |   | 0.4    |            |   |   | 1.012 |   |
| Canadian Dollar | Buy      |   | $               | 10,500,000 |   |             |   | 0.2    |            |   |   | 1.294 |   |
| Euro            | Sell     |   | €         | 18,500,000 |   |             |   | 1.8    |            |   |   | 1.472 |   |
| Pound Sterling  | Buy      |   | £          | 5,000,000  |   |             |   | 0.2    |            |   |   | 1.445 |   |
| Pound Sterling  | Sell     |   | £          | 10,000,000 |   |             |   | 3.2    |            |   |   | 1.745 |   |

----

|                                                                                           |   |   Three Months Ended June 30, |                                                        |
|------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------------------------------------------------------|
|                                                                                           |   |       2009     |                                                        |   |       2008 |   |
| Beginning balance, April 1                                                                     |   |                               | $          229 |   |   |   | $        109 |   |
| Deferred gain recorded in other comprehensive   income related to interest rate swap |   |                               | 48                                                          |   |   |   | – |   |
| Loss included in other comprehensive income                                                    |   |                               | (1,485                                                      | ) |   |   | (316 | ) |
| Ending balance, June 30                                                                        |   |                               | $     (1,208                            | ) |   |   | $      (207 | ) |

|                                                                                                      |   |   Six Months Ended June 30, |                                  |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------------------------------------|
|                                                                                                      |   |       2009        |                                  |   |       2008 |   |
| Beginning balance, January 1                                                                              |   |                             | $      7,161 |   |   |   | $        (55 | ) |
| Expiration of prior foreign currency forward   contracts included in other comprehensive income |   |                             | (7,873                                | ) |   |   | – |   |
| Deferred gain recorded in other comprehensive   income related to interest rate swap            |   |                             | 48                                    |   |   |   | – |   |
| Loss included in other comprehensive income                                                               |   |                             | (544                                  | ) |   |   | (152 | ) |
| Ending balance, June 30                                                                                   |   |                             | $     (1,208      | ) |   |   | $      (207 | ) |

|                                    |   |    Three Months Ended June 30, |                                                   |   |    Six Month Ended June 30, |   |
|-----------------------------------------|--------|-----------------------------------------------|--------------------------------------------------------|--------|---------------------------------------|--------|
|                                    |   |       2009                |                                                   |   |       2008        |   |   |       2009 |   |   |       2008 |   |
| Revenues                                |   |                                          | $         (590 | )      |                                  |   | $        1,963 |   |   |   | $         (590 | ) |   |   | $         7,571 |   |
| Gross loss                              |   |                                          | (698                                                   | )      |                                  |   | (699 | ) |   |   | (651 | ) |   |   | (734 | ) |
| Operating expenses                      |   |                                          | 759                                                    |   |                                  |   | 549 |   |   |   | 956 |   |   |   | 584 |   |
| Closure reversals of tunneling business |   |                                          | –                                                |   |                                  |   | – |   |   |   | – |   |   |   | (477 | ) |
| Operating loss                          |   |                                          | (1,457                                                 | )      |                                  |   | (1,248 | ) |   |   | (1,607 | ) |   |   | (1,318 | ) |
| Loss before tax benefits                |   |                                          | (1,457                                                 | )      |                                  |   | (813 | ) |   |   | (1,607 | ) |   |   | (946 | ) |
| Tax benefits                            |   |                                          | (265                                                   | )      |                                  |   | (297 | ) |   |   | (317 | ) |   |   | (343 | ) |
| Net loss                                |   |                                          | (1,192                                                 | )      |                                  |   | (516 | ) |   |   | (1,290 | ) |   |   | (603 | ) |

----

|                                                          |   |        June 30,          2009 |                                                        |   |      December 31,      2008 |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|-------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                                          |   |                                                                                                |                                                        |   |                                                                     |   |
| Receivables, net                                              |   |                                                                                                | $          244 |   |                                                                     |   | $       2,235 |   |
| Retainage                                                     |   |                                                                                                | 4,164                                                       |   |                                                                     |   | 5,917 |   |
| Claims and costs and estimated earnings in excess of billings |   |                                                                                                | 4,453                                                       |   |                                                                     |   | 5,104 |   |
| Prepaid expenses and other current assets                     |   |                                                                                                | 143                                                         |   |                                                                     |   | 448 |   |
| Property, plant and equipment, less accumulated depreciation  |   |                                                                                                | 2,903                                                       |   |                                                                     |   | 3,256 |   |
| Other assets                                                  |   |                                                                                                | 2,454                                                       |   |                                                                     |   | 2,587 |   |
| Total assets                                                  |   |                                                                                                | $     14,361                            |   |                                                                     |   | $     19,547 |   |
|                                                          |   |                                                                                                |                                                        |   |                                                                     |   |   |   |
| Current liabilities                                           |   |                                                                                                | $       1,402                 |   |                                                                     |   | $       1,541 |   |
| Other liabilities                                             |   |                                                                                                | 509                                                         |   |                                                                     |   | 818 |   |
| Total liabilities                                             |   |                                                                                                | $       1,911                 |   |                                                                     |   | $       2,359 |   |

----

|                                      |   | Three Months EndedJune 30, |                                                           |   | Six Months EndedJune 30, |   |
|-------------------------------------------|--------|----------------------------|----------------------------------------------------------------|--------|--------------------------|--------|
|                                      |   |   2009                |                                                           |   |   2008              |   |   |   2009 |   |   |   2008 |   |
|                                      |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |
| Revenues:                                 |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |
|  North American Sewer Rehabilitation |   |                       | $     83,687                               |   |                     |   | $      87,095 |   |   |   | $     164,192 |   |   |   | $     168,149 |   |
|  European Sewer Rehabilitation       |   |                       | 20,708                                                         |   |                     |   | 26,647 |   |   |   | 38,915 |   |   |   | 52,257 |   |
|  Asia-Pacific Sewer Rehabilitation   |   |                       | 6,597                                                          |   |                     |   | 2,152 |   |   |   | 12,342 |   |   |   | 3,691 |   |
|  Water Rehabilitation                |   |                       | 2,493                                                          |   |                     |   | 1,949 |   |   |   | 4,451 |   |   |   | 3,821 |   |
|  Energy and Mining                   |   |                       | 69,711                                                         |   |                     |   | 17,742 |   |   |   | 91,308 |   |   |   | 33,594 |   |
| Total revenues                            |   |                       | $   183,196                                          |   |                     |   | $    135,585 |   |   |   | $     311,208 |   |   |   | $     261,512 |   |
|                                      |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit (loss):                      |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|  North American Sewer Rehabilitation |   |                       | $     22,383                               |   |                     |   | $      19,830 |   |   |   | $       40,832 |   |   |   | $       36,219 |   |
|  European Sewer Rehabilitation       |   |                       | 5,644                                                          |   |                     |   | 5,276 |   |   |   | 10,142 |   |   |   | 9,996 |   |
|  Asia-Pacific Sewer Rehabilitation   |   |                       | 1,714                                                          |   |                     |   | 604 |   |   |   | 3,768 |   |   |   | 1,085 |   |
|  Water Rehabilitation                |   |                       | (80                                                            | )      |                     |   | 368 |   |   |   | (254 | ) |   |   | 429 |   |
|  Energy and Mining                   |   |                       | 18,255                                                         |   |                     |   | 5,052 |   |   |   | 24,101 |   |   |   | 10,287 |   |
| Total gross profit                        |   |                       | $     47,916                               |   |                     |   | $      31,130 |   |   |   | $       78,589 |   |   |   | $       58,016 |   |
|                                      |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):                  |   |                       |                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|  North American Sewer Rehabilitation |   |                       |     $       9,701 |   |                     |   | $        3,930 |   |   |   | $       15,520 |   |   |   | $         5,162 |   |
|  European Sewer Rehabilitation       |   |                       | 1,168                                                          |   |                     |   | (487 | ) |   |   | 1,025 |   |   |   | (1,437 | ) |
|  Asia-Pacific Sewer Rehabilitation   |   |                       | 532                                                            |   |                     |   | 179 |   |   |   | 1,794 |   |   |   | 349 |   |
|  Water Rehabilitation                |   |                       | (807                                                           | )      |                     |   | (677 | ) |   |   | (2,036 | ) |   |   | (1,260 | ) |
|  Energy and Mining                   |   |                       | 2,876                                                          |   |                     |   | 3,271 |   |   |   | (2,754 | ) |   |   | 6,656 |   |
| Total operating income                    |   |                       | $     13,470                               |   |                     |   | $        6,216 |   |   |   | $       13,549 |   |   |   | $         9,470 |   |

|                      |   | Three Months Ended June 30, |                                              |   | Six Months EndedJune 30, |   |
|---------------------------|--------|----------------------------------|---------------------------------------------------|--------|--------------------------|--------|
|                      |   |   2009                      |                                              |   |   2008              |   |   |   2009 |   |   |   2008 |   |
|                      |   |                             |                                              |   |                     |   |   |   |   |   |   |   |
| Revenues:                 |   |                             |                                              |   |                     |   |   |   |   |   |   |   |
|   United States |   |                             | $    126,195                       |   |                     |   | $      83,314 |   |   |   | $     213,261 |   |   |   | $   161,947 |   |
|   Canada        |   |                             | 22,925                                            |   |                     |   | 13,703 |   |   |   | 34,642 |   |   |   | 25,908 |   |
|   Europe        |   |                             | 24,074                                            |   |                     |   | 27,452 |   |   |   | 42,298 |   |   |   | 53,994 |   |
|   Other foreign |   |                             | 10,002                                            |   |                     |   | 11,116 |   |   |   | 21,007 |   |   |   | 19,663 |   |
| Total revenues            |   |                             | $    183,196                       |   |                     |   | $    135,585 |   |   |   | $     311,208 |   |   |   | $   261,512 |   |
|                      |   |                             |                                              |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit:             |   |                             |                                              |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   United States |   |                             | $      32,152            |   |                     |   | $      18,470 |   |   |   | $       51,753 |   |   |   | $     34,453 |   |
|   Canada        |   |                             | 6,352                                             |   |                     |   | 4,947 |   |   |   | 9,565 |   |   |   | 8,869 |   |
|   Europe        |   |                             | 6,681                                             |   |                     |   | 5,385 |   |   |   | 11,051 |   |   |   | 10,169 |   |
|   Other foreign |   |                             | 2,731                                             |   |                     |   | 2,328 |   |   |   | 6,220 |   |   |   | 4,525 |   |
| Total gross profit        |   |                             | $      47,916            |   |                     |   | $      31,130 |   |   |   | $       78,589 |   |   |   | $     58,016 |   |
|                      |   |                             |                                              |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):  |   |                             |                                              |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   United States |   |                             | $        6,690 |   |                     |   | $        2,308 |   |   |   | $         1,723 |   |   |   | $       3,559 |   |
|   Canada        |   |                             | 4,289                                             |   |                     |   | 3,203 |   |   |   | 6,570 |   |   |   | 5,392 |   |
|   Europe        |   |                             | 1,344                                             |   |                     |   | (750 | ) |   |   | 1,733 |   |   |   | (2,321 | ) |
|   Other foreign |   |                             | 1,147                                             |   |                     |   | 1,455 |   |   |   | 3,523 |   |   |   | 2,840 |   |
| Total operating income    |   |                             | $      13,470            |   |                     |   | $        6,216 |   |   |   | $       13,549 |   |   |   | $       9,470 |   |

----

Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations 

----

----

|                                                                                  |   |        |                              |   |        |   |                              | Increase (Decrease) |   |
|---------------------------------------------------------------------------------------|--------|-------------|-----------------------------------|--------|-------------|--------|-----------------------------------|---------------------|--------|
|                                                                                  |   |   2009 |                              |   |   2008 |   |                              |  $             |   |   |   | % |   |
| Three Months Ended June 30,                                                           |   |        |                              |   |        |   |                              |                |   |   |   |   |   |
| Revenues                                                                              |   |        | $     183,196      |   |        |   | $     135,585 |                |   |   | $     47,611 |   |   |   | 35.1 | % |
| Gross profit                                                                          |   |        | 47,916                            |   |        |   | 31,130                            |                |   |   | 16,786 |   |   |   | 53.9 |   |
| Gross margin                                                                          |   |        | 26.2                              | %      |        |   | 23.0                              | %                   |   |   |   |   |   |   | 3.2 |   |
| Operating expenses                                                                    |   |        | 34,446                            |   |        |   | 24,914                            |                |   |   | 9,532 |   |   |   | 38.3 |   |
| Operating income                                                                      |   |        | 13,470                            |   |        |   | 6,216                             |                |   |   | 7,254 |   |   |   | 116.7 |   |
| Operating margin                                                                      |   |        | 7.4                               | %      |        |   | 4.6                               | %                   |   |   |   |   |   |   | 2.8 |   |
| Net income from continuing operations   attributable to common stockholders |   |        | 7,738                             |   |        |   | 3,914                             |                |   |   | 3,824 |   |   |   | 97.7 |   |
|                                                                                  |   |        |                              |   |        |   |                              |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,                                                             |   |        |                              |   |        |   |                              |                |   |   |   |   |   |   |   |   |
| Revenues                                                                              |   |        | $     311,208 |   |        |   | $     261,512 |                |   |   | $     49,696 |   |   |   | 19.0 | % |
| Gross profit                                                                          |   |        | 78,589                            |   |        |   | 58,016                            |                |   |   | 20,573 |   |   |   | 35.5 |   |
| Gross margin                                                                          |   |        | 25.3                              | %      |        |   | 22.2                              | %                   |   |   |   |   |   |   | 3.1 |   |
| Operating expenses                                                                    |   |        | 65,040                            |   |        |   | 48,546                            |                |   |   | 16,494 |   |   |   | 34.0 |   |
| Operating income                                                                      |   |        | 13,549                            |   |        |   | 9,470                             |                |   |   | 4,079 |   |   |   | 43.1 |   |
| Operating margin                                                                      |   |        | 4.4                               | %      |        |   | 3.6                               | %                   |   |   |   |   |   |   | 0.8 |   |
| Net income from continuing operations   attributable to common stockholders |   |        | 6,632                             |   |        |   | 5,944                             |                |   |   | 688 |   |   |   | 11.6 |   |

----

|                        |   |   |                                   |   |   |   |                                   | Increase (Decrease) |   |
|-----------------------------|--------|--------|----------------------------------------|--------|--------|--------|----------------------------------------|---------------------|--------|
|                        |   | 2009   |                                   |   | 2008   |   |                                   |  $             |   |   |   | % |   |
| Three Months Ended June 30, |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |
|  Revenues              |   |   | $      83,687 |   |   |   | $      87,095 |                |   |   | $     (3,408 | ) |   |   | (3.9 | )% |
|  Gross profit          |   |   | 22,383                                 |   |   |   | 19,830                                 |                |   |   | 2,553 |   |   |   | 12.9 |   |
|  Gross margin          |   |   | 26.7                                   | %      |   |   | 22.8                                   | %                   |   |   |   |   |   |   | 3.9 |   |
|  Operating expenses    |   |   | 12,682                                 |   |   |   | 15,900                                 |                |   |   | (3,218 | ) |   |   | (20.2 | ) |
|  Operating income      |   |   | 9,701                                  |   |   |   | 3,930                                  |                |   |   | 5,771 |   |   |   | 146.9 |   |
|  Operating margin      |   |   | 11.6                                   | %      |   |   | 4.5                                    | %                   |   |   |   |   |   |   | 7.1 |   |
|                        |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,   |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |   |   |   |
|  Revenues              |   |   | $    164,192            |   |   |   | $    168,149            |                |   |   | $     (3,957 | ) |   |   | (2.4 | )% |
|  Gross profit          |   |   | 40,832                                 |   |   |   | 36,219                                 |                |   |   | 4,613 |   |   |   | 12.7 |   |
|  Gross margin          |   |   | 24.9                                   | %      |   |   | 21.5                                   | %                   |   |   |   |   |   |   | 3.4 |   |
|  Operating expenses    |   |   | 25,312                                 |   |   |   | 31,057                                 |                |   |   | (5,745 | ) |   |   | (18.5 | ) |
|  Operating income      |   |   | 15,520                                 |   |   |   | 5,162                                  |                |   |   | 10,358 |   |   |   | 200.7 |   |
|  Operating margin      |   |   | 9.5                                    | %      |   |   | 3.1                                    | %                   |   |   |   |   |   |   | 6.4 |   |

----

|                          |   |   |                                   |   |   |   |                                   | Increase (Decrease) |   |
|-------------------------------|--------|--------|----------------------------------------|--------|--------|--------|----------------------------------------|---------------------|--------|
|                          |   | 2009   |                                   |   | 2008   |   |                                   |  $             |   |   |   | % |   |
| Three Months Ended June 30,   |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |
|  Revenues                |   |   | $      20,708 |   |   |   | $      26,647 |                |   |   | $      (5,939 | ) |   |   | (22.3 | )% |
|  Gross profit            |   |   | 5,644                                  |   |   |   | 5,276                                  |                |   |   | 368 |   |   |   | 7.0 |   |
|  Gross margin            |   |   | 27.3                                   | %      |   |   | 19.8                                   | %                   |   |   |   |   |   |   | 7.5 |   |
|  Operating expenses      |   |   | 4,476                                  |   |   |   | 5,763                                  |                |   |   | (1,287 | ) |   |   | (22.3 | ) |
|  Operating income (loss) |   |   | 1,168                                  |   |   |   | (487                                   | )                   |   |   | 1,655 |   |   |   | 340.0 |   |
|  Operating margin        |   |   | 5.6                                    | %      |   |   | (1.8                                   | )%                  |   |   |   |   |   |   | 7.4 |   |
|                          |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,     |   |   |                                   |   |   |   |                                   |                |   |   |   |   |   |   |   |   |
|  Revenues                |   |   | $      38,915 |   |   |   | $      52,257 |                |   |   | $    (13,342 | ) |   |   | (25.5 | )% |
|  Gross profit            |   |   | 10,142                                 |   |   |   | 9,996                                  |                |   |   | 146 |   |   |   | 1.5 |   |
|  Gross margin            |   |   | 26.1                                   | %      |   |   | 19.1                                   | %                   |   |   |   |   |   |   | 7.0 |   |
|  Operating expenses      |   |   | 9,117                                  |   |   |   | 11,433                                 |                |   |   | (2,316 | ) |   |   | (20.3 | ) |
|  Operating income (loss) |   |   | 1,025                                  |   |   |   | (1,437                                 | )                   |   |   | 2,462 |   |   |   | 171.3 |   |
|  Operating margin        |   |   | 2.6                                    | %      |   |   | (2.7                                   | )%                  |   |   |   |   |   |   | 5.3 |   |

----

----

|                        |   |        |                                              |   |        |   |                                  | Increase (Decrease) |   |
|-----------------------------|--------|-------------|---------------------------------------------------|--------|-------------|--------|---------------------------------------|---------------------|--------|
|                        |   |   2009 |                                              |   |   2008 |   |                                  |    $      |   |   |   |   % |   |
| Three Months Ended June 30, |   |        |                                              |   |        |   |                                  |                |   |   |   |   |   |
|  Revenues              |   |        | $        6,597 |   |        |   | $      2,152 |                |   |   | $      4,445 |   |   |   | 206.6 | % |
|  Gross profit          |   |        | 1,714                                             |   |        |   | 604                                   |                |   |   | 1,110 |   |   |   | 183.8 |   |
|  Gross margin          |   |        | 26.0                                              | %      |        |   | 28.1                                  | %                   |   |   |   |   |   |   | (2.1 | ) |
|  Operating expenses    |   |        | 1,182                                             |   |        |   | 425                                   |                |   |   | 757 |   |   |   | 178.2 |   |
|  Operating income      |   |        | 532                                               |   |        |   | 179                                   |                |   |   | 353 |   |   |   | 197.0 |   |
|  Operating margin      |   |        | 8.1                                               | %      |        |   | 8.3                                   | %                   |   |   |   |   |   |   | (0.2 | ) |
|                        |   |        |                                              |   |        |   |                                  |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,   |   |        |                                              |   |        |   |                                  |                |   |   |   |   |   |   |   |   |
|  Revenues              |   |        | $      12,342            |   |        |   | $      3,691 |                |   |   | $      8,651 |   |   |   | 234.4 | % |
|  Gross profit          |   |        | 3,768                                             |   |        |   | 1,085                                 |                |   |   | 2,683 |   |   |   | 247.2 |   |
|  Gross margin          |   |        | 30.5                                              | %      |        |   | 29.4                                  | %                   |   |   |   |   |   |   | 1.1 |   |
|  Operating expenses    |   |        | 1,974                                             |   |        |   | 736                                   |                |   |   | 1,238 |   |   |   | 168.1 |   |
|  Operating income      |   |        | 1,794                                             |   |        |   | 349                                   |                |   |   | 1,445 |   |   |   | 414.1 |   |
|  Operating margin      |   |        | 14.5                                              | %      |        |   | 9.5                                   | %                   |   |   |   |   |   |   | 5.0 |   |

----

|                        |   |               |                                  |   |               |   |                                        | Increase (Decrease) |   |
|-----------------------------|--------|--------------------|---------------------------------------|--------|--------------------|--------|---------------------------------------------|---------------------|--------|
|                        |   |     2009 |                                  |   |     2008 |   |                                        |    $      |   |   |   |   % |   |
| Three Months Ended June 30, |   |               |                                  |   |               |   |                                        |                |   |   |   |   |   |
|  Revenues              |   |               | $      2,493 |   |               |   | $       1,949 |                |   |   | $      544 |   |   |   | 27.9 | % |
|  Gross profit (loss)   |   |               | (80                                   | )      |               |   | 368                                         |                |   |   | (448 | ) |   |   | (121.7 | ) |
|  Gross margin          |   |               | (3.2                                  | )%     |               |   | 18.9                                        | %                   |   |   |   |   |   |   | (22.1 | ) |
|  Operating expenses    |   |               | 727                                   |   |               |   | 1,045                                       |                |   |   | (318 | ) |   |   | (30.4 | ) |
|  Operating loss        |   |               | (807                                  | )      |               |   | (677                                        | )                   |   |   | (130 | ) |   |   | (19.2 | ) |
|  Operating margin      |   |               | (32.4                                 | )%     |               |   | (34.7                                       | )%                  |   |   |   |   |   |   | 2.3 |   |
|                        |   |               |                                  |   |               |   |                                        |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,   |   |               |                                  |   |               |   |                                        |                |   |   |   |   |   |   |   |   |
|  Revenues              |   |               | $      4,451 |   |               |   | $       3,821 |                |   |   | $      630 |   |   |   | 16.5 | % |
|  Gross profit (loss)   |   |               | (254                                  | )      |               |   | 429                                         |                |   |   | (683 | ) |   |   | (159.2 | ) |
|  Gross margin          |   |               | (5.7                                  | )%     |               |   | 11.2                                        | %                   |   |   |   |   |   |   | (16.9 | ) |
|  Operating expenses    |   |               | 1,782                                 |   |               |   | 1,689                                       |                |   |   | 93 |   |   |   | 5.5 |   |
|  Operating loss        |   |               | (2,036                                | )      |               |   | (1,260                                      | )                   |   |   | (776 | ) |   |   | (61.6 | ) |
|  Operating margin      |   |               | (45.7                                 | )%     |               |   | (33.0                                       | )%                  |   |   |   |   |   |   | (12.7 | ) |

----

|                               |   |        |                             |   |        |   |                       | Increase (Decrease) |   |
|------------------------------------|--------|-------------|----------------------------------|--------|-------------|--------|----------------------------|---------------------|--------|
|                               |   |   2009 |                             |   |   2008 |   |                       |    $      |   |   |   |   % |   |
| Three Months Ended June 30,        |   |        |                             |   |        |   |                       |                |   |   |   |   |   |
|  Revenues                     |   |        | $     69,711 |   |        |   | $    17,742 |                |   |   | $     51,969 |   |   |   | 292.9 | % |
|  Gross profit                 |   |        | 18,255                           |   |        |   | 5,052                      |                |   |   | 13,203 |   |   |   | 261.3 |   |
|  Gross margin                 |   |        | 26.2                             | %      |        |   | 28.5                       | %                   |   |   |   |   |   |   | (2.3 | ) |
|  Operating expenses           |   |        | 15,379                           |   |        |   | 1,781                      |                |   |   | 13,598 |   |   |   | 763.5 |   |
|  Operating income             |   |        | 2,876                            |   |        |   | 3,271                      |                |   |   | (395 | ) |   |   | (12.1 | ) |
|  Operating margin             |   |        | 4.1                              | %      |        |   | 18.4                       | %                   |   |   |   |   |   |   | (14.3 | ) |
|                               |   |        |                             |   |        |   |                       |                |   |   |   |   |   |   |   |   |
| Six Months Ended June 30,          |   |        |                             |   |        |   |                       |                |   |   |   |   |   |   |   |   |
|  Revenues                     |   |        | $     91,308 |   |        |   | $    33,594 |                |   |   | $     57,714 |   |   |   | 171.8 | % |
|  Gross profit                 |   |        | 24,101                           |   |        |   | 10,287                     |                |   |   | 13,814 |   |   |   | 134.3 |   |
|  Gross margin                 |   |        | 26.4                             | %      |        |   | 30.6                       | %                   |   |   |   |   |   |   | (4.2 | ) |
|  Acquisition related expenses |   |        | 8,219                            |   |        |   | –                    |                |   |   | 8,219 |   |   |   |   |   |
|  Operating expenses           |   |        | 18,636                           |   |        |   | 3,631                      |                |   |   | 15,005 |   |   |   | 413.2 |   |
|  Operating income (loss)      |   |        | (2,754                           | )      |        |   | 6,656                      |                |   |   | (9,410 | ) |   |   | (141.4 | ) |
|  Operating margin             |   |        | (3.0                             | )%     |        |   | 19.9                       | %                   |   |   |   |   |   |   | (22.9 | ) |

----

----

----

| Backlog                              |   |     June 30,    2009 |                                        |   |     March 31,    2009 |   |                                              |     December 31,    2008 |   |   |     September 30,    2008 |   |   |     June 30,    2008 |                                              |
|--------------------------------------|--------|-----------------------------------------------|---------------------------------------------|--------|-------------------------------------------|--------|---------------------------------------------------|---------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-----------------------------------------------|---------------------------------------------------|
| (in millions)                        |   |
| North American Sewer Rehabilitation  |   |                                          | $       206.8 |   |                                      |   | $        160.4 |                                              |   |   | $         150.8 |   |   |                                          | $        178.5 |   |   |   | $          185.4 |   |
| European Sewer Rehabilitation        |   |                                          | 40.9                                        |   |                                      |   | 26.1                                              |                                              |   |   | 25.2                                                    |   |   |                                          | 30.7                                              |   |   |   | 34.9 |   |
| Asia-Pacific Sewer Rehabilitation(1) |   |                                          | 60.9                                        |   |                                      |   | 40.1                                              |                                              |   |   | 46.2                                                    |   |   |                                          | 53.6                                              |   |   |   | 33.2 |   |
| Water Rehabilitation                 |   |                                          | 7.7                                         |   |                                      |   | 8.9                                               |                                              |   |   | 8.2                                                     |   |   |                                          | 6.7                                               |   |   |   | 11.6 |   |
| Energy and Mining (2)                |   |                                          | 146.1                                       |   |                                      |   | 153.2                                             |                                              |   |   | 18.7                                                    |   |   |                                          | 23.4                                              |   |   |   | 24.7 |   |
| Total                                |   |                                          | $       462.4 |   |                                      |   | $        388.7 |                                              |   |   | $         249.1 |   |   |                                          | $        292.9 |   |   |   | $          289.8 |   |

|   | (1) | Contract backlog for our Asia-Pacific Sewer Rehabilitation segment at June 30, 2009 included $24.5 million of backlog of IAL and IPPL. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Contract backlog for our Energy and Mining segment at June 30, 2009 includes backlog of our newly acquired Bayou and Corrpro businesses of $66.8 million and $64.5 million, respectively. At March 31, 2009, backlog of Bayou and Corrpro were $76.7 million and $62.2 million, respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   |   June 30,  2009 |                                         |   |   December 31,  2008 |   |
|---------------------------|--------|----------------------------|----------------------------------------------|--------|--------------------------------|--------|
|                      |   | (in thousands)             |                                         |
| Cash and cash equivalents |   |                       | $       79,457 |   |                           |   | $       99,321 |   |
| Restricted cash           |   |                       | 1,421                                        |   |                           |   | 1,829 |   |

----

----

| Payments Due by Period             |   |
|------------------------------------|--------|
| Cash Obligations(1)(2)(3)(4)       |   |       Total |   |   |       2009 |   |   |       2010 |   |   |       2011 |   |   |       2012 |   |   |       2013 |   |   |       Thereafter |   |
| Long-term debt                     |   |   | $     112,500 |   |   |   | $        5,000 |   |   |   | $     10,000 |   |   |   | $     10,000 |   |   |   | $     22,500 |   |   |   | $      65,000 |   |   |   | $                 - |   |
| Line of credit facility            |   |   | 7,500 |   |   |   | 7,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest on long-term debt         |   |   | 24,168 |   |   |   | 5,399 |   |   |   | 6,230 |   |   |   | 5,830 |   |   |   | 4,584 |   |   |   | 2,125 |   |   |   | - |   |
| Operating leases                   |   |   | 37,299 |   |   |   | 8,862 |   |   |   | 11,548 |   |   |   | 7,321 |   |   |   | 4,011 |   |   |   | 2,519 |   |   |   | 3,038 |   |
| Total contractual cash obligations |   |   | $     181,467 |   |   |   | $      26,761 |   |   |   | $     27,778 |   |   |   | $     23,151 |   |   |   | $     31,095 |   |   |   | $      69,644 |   |   |   | $          3,038 |   |

| (1) | Cash obligations are not discounted. See Notes 5 and 7 to the consolidated financial statements contained in this report regarding our long-term debt and credit facility and commitments and contingencies, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Resin supply contracts are excluded from this table. See “Commodity Risk” under Part I, Item 3 of this report for further discussion. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | As of June 30, 2009, we had borrowed the entire amount of the $50.0 million term loan and $7.5 million of our revolving line of credit under our $115.0 million credit facility in connection with our acquisition of Corrpro Companies, Inc. on March 31, 2009. We also had $19.3 million for non-interest bearing letters of credit outstanding as of June 30, 2009, $15.2 million of which was collateral for insurance, $1.5million of which was collateral for work performance and $2.6 million was for security in support of working capital, leasing and performance bonding needs resulting from the consolidation of IPPL and IAL in connection with the Company’s acquisition of its joint venture partner's 50% ownership interest in such entities as of June 30, 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Liabilities related to FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109, have not been included in the table above because we are uncertain as to if or when such amounts may be settled. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|                                |   |   |                            |
|-------------------------------------|--------|--------|---------------------------------|
| North American Sewer Rehabilitation |   |   | $     102.3 |   |
| European Sewer Rehabilitation       |   |   | 19.8                            |   |
| Asia-Pacific Sewer Rehabilitation   |   |   | 3.2                             |   |
| Energy and Mining                   |   |   | 63.1                            |   |
| Total Goodwill                      |   |   | $     188.4 |   |

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Item 4.   Controls and Procedures 

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Item 1. Legal Proceedings 

Item 1A. Risk Factors 

Item 4. Submission of Matters to a Vote of Security Holders 

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SIGNATURE 

|                                                                                                                                                                                                                                                                                                                                                                                                                                 |  INSITUFORM TECHNOLOGIES, INC.                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                 |   |   |
| Date:  July 30, 2009                                                                  |  /s/ David A. Martin                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |  David A. Martin                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |  Senior Vice President and Chief Financial Officer              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |  (Principal Financial Officer and Principal Accounting Officer) |   |

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INDEX TO EXHIBITS 

| 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|