----

----

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

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

----

----

| PART      I—FINANCIAL INFORMATION                                                                                    |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                       |   |
| Item 1.    Financial      Statements:                                                                            |   |
|                                                                                                                       |   |
| Consolidated Statements of Operations for      the Three and Nine Months Ended September 30, 2009 and      2008            | 3      |
|                                                                                                                       |   |
| Consolidated Balance Sheets as of September      30, 2009 and December 31, 2008                                            | 4      |
|                                                                                                                       |   |
| Consolidated Statements of Equity for the Nine      Months Ended September 30, 2009 and 2008                               | 5      |
|                                                                                                                       |   |
| Consolidated Statements of Cash Flows for the      Nine Months Ended September 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 | 20     |
|                                                                                                                       |   |
| Item 3.    Quantitative and Qualitative Disclosures      About Market Risk                                  | 35     |
|                                                                                                                       |   |
| Item 4.    Controls and Procedures                                                                          | 36     |
|                                                                                                                       |   |
| PART      II—OTHER INFORMATION                                                                                       |   |
|                                                                                                                       |   |
| Item 1.    Legal Proceedings                                                                                | 37     |
|                                                                                                                       |   |
| Item 1A. Risk Factors                                                                                                 | 37     |
|                                                                                                                       |   |
| Item 6.    Exhibits                                                                                         | 37     |
|                                                                                                                       |   |
| SIGNATURE                                                                                                                  | 38     |
|                                                                                                                       |   |
| INDEX TO EXHIBITS                                                                                                          | 39     |

----

CONSOLIDATED STATEMENTS OFOPERATIONS

|                                                                                  |   | For      the Three Months Ended September 30, |                                                                          |   | For      the Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------------|-------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                  |   |            2009           |                                                                          |   |            2008     |   |   |            2009 |   |   |            2008 |   |
|                                                                                  |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |
| Revenues                                                                              |   |                                          | $           201,852                                  |   |                                         |   | $            137,877 |   |   |   | $            513,060 |   |   |   | $              399,390 |   |
| Cost      of revenues                                                                 |   |                                          | 148,730                                                                       |   |                                         |   | 105,655 |   |   |   | 381,349 |   |   |   | 309,152 |   |
| Gross      profit                                                                     |   |                                          | 53,122                                                                        |   |                                         |   | 32,222 |   |   |   | 131,711 |   |   |   | 90,238 |   |
| Acquisition-related      costs                                                        |   |                                          | (1,600                                                                        | )      |                                         |   | – |   |   |   | 6,619 |   |   |   | – |   |
| Operating      expenses                                                               |   |                                          | 37,018                                                                        |   |                                         |   | 21,948 |   |   |   | 93,839 |   |   |   | 70,494 |   |
| Operating      income                                                                 |   |                                          | 17,704                                                                        |   |                                         |   | 10,274 |   |   |   | 31,253 |   |   |   | 19,744 |   |
| Other      income (expense):                                                          |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                  |   |                                          | 120                                                                           |   |                                         |   | 823 |   |   |   | 304 |   |   |   | 2,410 |   |
| Interest      expense                                                                 |   |                                          | (2,327                                                                        | )      |                                         |   | (1,161 | ) |   |   | (5,804 | ) |   |   | (3,546 | ) |
| Other                                                                                 |   |                                          | 363                                                                           |   |                                         |   | (68 | ) |   |   | 655 |   |   |   | 937 |   |
| Total      other income (expense)                                                     |   |                                          | (1,844                                                                        | )      |                                         |   | (406 | ) |   |   | (4,845 | ) |   |   | (199 | ) |
| Income      before taxes on income                                                    |   |                                          | 15,860                                                                        |   |                                         |   | 9,868 |   |   |   | 26,408 |   |   |   | 19,545 |   |
| Taxes      on income                                                                  |   |                                          | 4,939                                                                         |   |                                         |   | 2,035 |   |   |   | 7,684 |   |   |   | 4,842 |   |
| Income      before equity in earnings (losses) of affiliated   companies    |   |                                          | 10,921                                                                        |   |                                         |   | 7,833 |   |   |   | 18,724 |   |   |   | 14,703 |   |
| Equity      in earnings (losses) of affiliated companies,   net of      tax |   |                                          | 1,011                                                                         |   |                                         |   | 351 |   |   |   | 704 |   |   |   | (243 | ) |
| Income      before discontinued operations                                            |   |                                          | 11,932                                                                        |   |                                         |   | 8,184 |   |   |   | 19,428 |   |   |   | 14,460 |   |
| Loss      from discontinued operations, net of tax                                    |   |                                          | (2,646                                                                        | )      |                                         |   | (1,139 | ) |   |   | (3,936 | ) |   |   | (1,744 | ) |
| Net      income                                                                       |   |                                          | 9,286                                                                         |   |                                         |   | 7,045 |   |   |   | 15,492 |   |   |   | 12,716 |   |
| Less:  net      income attributable to noncontrolling   interests |   |                                          | (139                                                                          | )      |                                         |   | (393 | ) |   |   | (1,003 | ) |   |   | (726 | ) |
| Net      income attributable to common stockholders                                   |   |                                          | $               9,147            |   |                                         |   | $                6,652 |   |   |   | $              14,489 |   |   |   | $               11,990 |   |
|                                                                                  |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share attributable to common stockholders:                          |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations                                                |   |                                          | $                 0.31 |   |                                         |   | $                  0.28 |   |   |   | $                   0.50 |   |   |   | $                   0.50 |   |
| Loss      from discontinued operations                                                |   |                                          | (0.07                                                                         | )      |                                         |   | (0.04 | ) |   |   | (0.10 | ) |   |   | (0.06 | ) |
| Net      income                                                                       |   |                                          | 0.24                                                                          |   |                                         |   | 0.24 |   |   |   | 0.40 |   |   |   | 0.44 |   |
| Diluted:                                                                              |   |                                          |                                                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations                                                |   |                                          | $                 0.30 |   |                                         |   | $                  0.28 |   |   |   | $                   0.50 |   |   |   | $                   0.49 |   |
| Loss      from discontinued operations                                                |   |                                          | (0.07                                                                         | )      |                                         |   | (0.04 | ) |   |   | (0.10 | ) |   |   | (0.06 | ) |
| Net      income                                                                       |   |                                          | $                 0.23 |   |                                         |   | $                  0.24 |   |   |   | $                   0.40 |   |   |   | $                   0.43 |   |

----

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                  |   |           September 30,          2009 |                                                                                  |   |           December 31,          2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                                                                                                                  |   |                                                                          |                                                                                  |   |                                                                         |   |
| Assets                                                                                                                                                |   |                                                                          |                                                                                  |   |                                                                         |   |
|  Current      assets                                                                                                                             |   |                                                                          |                                                                                  |   |                                                                         |   |
|      Cash      and cash equivalents                                                                                          |   |                                                                          | $                  90,663 |   |                                                                         |   | $                  99,321 |   |
|      Restricted      cash                                                                                                    |   |                                                                          | 2,072                                                                                 |   |                                                                         |   | 1,829 |   |
|  Receivables,      net                                                                                                                           |   |                                                                          | 142,897                                                                               |   |                                                                         |   | 97,257 |   |
|  Retainage                                                                                                                                       |   |                                                                          | 21,131                                                                                |   |                                                                         |   | 21,380 |   |
|  Costs      and estimated earnings in excess of billings                                                                                         |   |                                                                          | 61,412                                                                                |   |                                                                         |   | 37,224 |   |
|  Inventories                                                                                                                                     |   |                                                                          | 31,808                                                                                |   |                                                                         |   | 16,320 |   |
|  Prepaid      expenses and other assets                                                                                                          |   |                                                                          | 27,238                                                                                |   |                                                                         |   | 37,637 |   |
|  Current      assets of discontinued operations                                                                                                  |   |                                                                          | 5,852                                                                                 |   |                                                                         |   | 13,704 |   |
|  Total      current assets                                                                                                                       |   |                                                                          | 383,073                                                                               |   |                                                                         |   | 324,672 |   |
|  Property, plant and      equipment, less accumulated depreciation                                                                               |   |                                                                          | 138,037                                                                               |   |                                                                         |   | 71,423 |   |
|  Other      assets                                                                                                                               |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
|  Goodwill                                                                                                                                        |   |                                                                          | 183,999                                                                               |   |                                                                         |   | 122,961 |   |
|  Identified      intangible assets, less accumulated amortization                                                                                |   |                                                                          | 79,287                                                                                |   |                                                                         |   | 10,353 |   |
|  Investments      in affiliated companies                                                                                                        |   |                                                                          | 27,868                                                                                |   |                                                                         |   | 6,769 |   |
|  Other      assets                                                                                                                               |   |                                                                          | 17,099                                                                                |   |                                                                         |   | 7,285 |   |
|  Total      other assets                                                                                                                         |   |                                                                          | 308,253                                                                               |   |                                                                         |   | 147,368 |   |
|  Non-current      assets of discontinued operations                                                                                              |   |                                                                          | 6,039                                                                                 |   |                                                                         |   | 5,843 |   |
|                                                                                                                                                  |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
| Total      Assets                                                                                                                                     |   |                                                                          | $                835,402            |   |                                                                         |   | $                549,306 |   |
|                                                                                                                                                  |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
| Liabilities and Equity                                                                                                                                |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
|  Current      liabilities                                                                                                                        |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
|      Accounts      payable and accrued expenses                                                                              |   |                                                                          | $                137,903            |   |                                                                         |   | $                  97,593 |   |
|      Billings      in excess of costs and estimated earnings                                                                 |   |                                                                          | 11,737                                                                                |   |                                                                         |   | 9,596 |   |
|      Current      maturities of long-term debt and line of credit                                                            |   |                                                                          | 10,000                                                                                |   |                                                                         |   | – |   |
|      Notes      payable                                                                                                      |   |                                                                          | 4,703                                                                                 |   |                                                                         |   | 938 |   |
|      Current      liabilities of discontinued operations                                                                     |   |                                                                          | 1,576                                                                                 |   |                                                                         |   | 1,541 |   |
|  Total      current liabilities                                                                                                                  |   |                                                                          | 165,919                                                                               |   |                                                                         |   | 109,668 |   |
|  Long-term debt,      less current maturities                                                                                                    |   |                                                                          | 100,000                                                                               |   |                                                                         |   | 65,000 |   |
|  Other      liabilities                                                                                                                          |   |                                                                          | 44,791                                                                                |   |                                                                         |   | 2,831 |   |
|  Non-current      liabilities of discontinued operations                                                                                         |   |                                                                          | 1,142                                                                                 |   |                                                                         |   | 818 |   |
|  Total      liabilities                                                                                                                          |   |                                                                          | 311,852                                                                               |   |                                                                         |   | 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   38,880,443 and      27,977,785 |   |                                                                          | 389                                                                                   |   |                                                                         |   | 280 |   |
|  Additional      paid-in capital                                                                                                                 |   |                                                                          | 242,197                                                                               |   |                                                                         |   | 109,235 |   |
|  Retained      earnings                                                                                                                          |   |                                                                          | 275,105                                                                               |   |                                                                         |   | 260,616 |   |
|  Accumulated      other comprehensive income (loss)                                                                                              |   |                                                                          | 1,025                                                                                 |   |                                                                         |   | (2,154 | ) |
|  Total      stockholders’ equity before noncontrolling interests                                                                           |   |                                                                          | 518,716                                                                               |   |                                                                         |   | 367,977 |   |
|      Noncontrolling      interests                                                                                           |   |                                                                          | 4,834                                                                                 |   |                                                                         |   | 3,012 |   |
|  Total      equity                                                                                                                               |   |                                                                          | 523,550                                                                               |   |                                                                         |   | 370,989 |   |
|                                                                                                                                                  |   |                                                                          |                                                                                  |   |                                                                         |   |   |   |
| Total      Liabilities and Equity                                                                                                                     |   |                                                                          | $                835,402            |   |                                                                         |   | $                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                                                                     |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | 11,990                           |   |              |   | –                                                                  |                      |   |   | 726 |   |   |   | 12,716 |   |   |   | $             12,716 |   |
| Issuance      of common stock                                                       |   |                                                                                                                                                   | 14,200     |   |                     |   | –                                                          |                   |   |   | 76                                                    |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 76 |   |   |   |   |   |
| Restricted      stock issued                                                        |   |                                                                                                                                                   | 442,553    |   |                     |   | 5                                                                |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 5 |   |   |   |   |   |
| Distribution      of shares pursuant to deferred stock unit awards                  |   |                                                                                                                                                   | 27,382     |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | – |   |   |   | – |   |
| Amortization      and forfeitures of restricted stock shares                        |   |                                                                                                                                                   | (25,225    | )      |                     |   | (1                                                               | )                      |   |   | (62                                                   | )      |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | (63 | ) |   |   | – |   |
| Equity-based      compensation expense                                              |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | 3,555                                                 |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 3,555 |   |   |   | – |   |
| Gain from      derivative instruments                                          |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | 3,362                                                                    |                      |   |   | – |   |   |   | 3,362 |   |   |   | 3,362 |   |
| Foreign      currency translation adjustment                                        |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | (10,712                                                                  | )                         |   |   | (221 | ) |   |   | (10,933 | ) |   |   | (10,933 | ) |
| Total      comprehensive income                                                     |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   | 5,145 |   |
| Less:      total comprehensive income attributable to noncontrolling      interests |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   |   505 |   |
| Total      comprehensive income attributable to common stockholders                 |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   | $              4,640 |   |
| BALANCE,      September 30, 2008                                                    |   |                                                                                                                                                   | 27,929,533 |   |                     |   | $               279 |                   |   |   | $         107,901                      |   |   |                           | $         250,966 |   |              |   | $                1,608 |                      |   |   | $             3,222 |   |   |   | $          363,976 |   |   |   |   |   |
|                                                                                |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE,      December 31, 2008                                                     |   |                                                                                                                                                   | 27,977,785 |   |                     |   | $               280 |                   |   |   | $         109,235                      |   |   |                           | $         260,616 |   |              |   | $              (2,154            | )                         |   |   | $             3,012 |   |   |   | 370,989 |   |   |   |   |   |
| Net      income                                                                     |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | 14,489                           |   |              |   | –                                                                  |                      |   |   | 1,003 |   |   |   | 15,492 |   |   |   | $            15,492 |   |
| Issuance      of common stock                                                       |   |                                                                                                                                                   | 10,524,369 |   |                     |   | 106                                                              |                   |   |   | 129,472                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 129,578 |   |   |   | – |   |
| Restricted      stock issued                                                        |   |                                                                                                                                                   | 426,951    |   |                     |   | 4                                                                |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 4 |   |   |   | – |   |
| Distribution      of shares pursuant to deferred stock unit awards                  |   |                                                                                                                                                   | 21,645     |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | – |   |   |   | – |   |
| Amortization      and forfeitures of restricted stock shares                        |   |                                                                                                                                                   | (70,307    | )      |                     |   | (1                                                               | )                      |   |   | (113                                                  | )      |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | (114 | ) |   |   | – |   |
| Equity-based      compensation expense                                              |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | 3,603                                                 |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | – |   |   |   | 3,603 |   |   |   | – |   |
| Dividend      to non-controlling interest                                           |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | (959 | ) |   |   | (959 | ) |   |   | – |   |
| Investment      by non-controlling interest in India                                |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | –                                                                  |                      |   |   | 1,621 |   |   |   | 1,621 |   |   |   | – |   |
| Gain      (loss) from derivative instruments                                        |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | (453                                                                     | )                         |   |   | – |   |   |   | (453) |   |   |   | (453 | ) |
| Foreign      currency translation adjustment                                        |   |                                                                                                                                                   | –    |   |                     |   | –                                                          |                   |   |   | –                                               |   |   |                           | –                          |   |              |   | 3,632                                                                    |                      |   |   | 157 |   |   |   | 3,789 |   |   |   | 3,789 |   |
| Total      comprehensive income                                                     |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   | 18,828 |   |
| Less:      total comprehensive income attributable to noncontrolling      interests |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   |   1,822 |   |
| Total      comprehensive income attributable to common stockholders                 |   |                                                                                                                                                   |       |   |                     |   |                                                             |                   |   |   |                                                  |   |   |                           |                             |   |              |   |                                                                     |                      |   |   |   |   |   |   |   |   |   |   | $            17,006 |   |
| BALANCE,      September 30, 2009                                                    |   |                                                                                                                                                   | 38,880,443 |   |                     |   | $               389 |                   |   |   | $         242,197                      |   |   |                           | $         275,105 |   |              |   | $                1,025 |                      |   |   | $            4,834 |   |   |   | $          523,550 |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                        |   | For      the Nine MonthsEnded      September 30,                             |                                                                      |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                                        |   |                  2009 |                                                                      |   |                   2008 |   |
|                                                                                        |   |                                                                         |                                                                      |   |   |   |
| Cash flows from      operating activities:                                                  |   |                                                                         |                                                                      |   |   |   |
| Net      income                                                                             |   |                                                                         | $                15,492 |   |   |   | $               12,716 |   |
| Loss      from discontinued operations                                                      |   |                                                                         | 3,936                                                                     |   |   |   | 1,744 |   |
| Income      from continuing operations                                                      |   |                                                                         | 19,428                                                                    |   |   |   | 14,460 |   |
| Adjustments      to reconcile to net cash provided by operating activities:                 |   |                                                                         |                                                                      |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                                                                         | 19,966                                                                    |   |   |   | 12,973 |   |
| Gain      on sale of fixed assets                                                           |   |                                                                         | (171                                                                      | ) |   |   | (1,452 | ) |
| Equity-based      compensation expense                                                      |   |                                                                         | 3,603                                                                     |   |   |   | 3,555 |   |
| Deferred      income taxes                                                                  |   |                                                                         | 641                                                                       |   |   |   | 710 |   |
| Dividends      received from equity investment, net of equity earnings                      |   |                                                                         | 1,777                                                                     |   |   |   | – |   |
| Other                                                                                       |   |                                                                         | (3,097                                                                    | ) |   |   | (864 | ) |
| Changes      in operating assets and liabilities:                                           |   |                                                                         |                                                                      |   |   |   |   |   |
| Restricted      cash                                                                        |   |                                                                         | (121                                                                      | ) |   |   | 327 |   |
| Receivables      net, retainage and costs and estimated earnings in excess of      billings |   |                                                                         | (11,707                                                                   | ) |   |   | (20,510 | ) |
| Inventories                                                                                 |   |                                                                         | 403                                                                       |   |   |   | (55 | ) |
| Prepaid      expenses and other assets                                                      |   |                                                                         | 9,636                                                                     |   |   |   | (4,457 | ) |
| Accounts      payable and accrued expenses                                                  |   |                                                                         | (8,889                                                                    | ) |   |   | 8,883 |   |
| Net      cash provided by operating activities of continuing    operations                  |   |                                                                         | 31,469                                                                    |   |   |   | 13,570 |   |
| Net      cash provided by operating activities of discontinued      operations              |   |                                                                         | 1,632                                                                     |   |   |   | 466 |   |
| Net      cash provided by operating activities                                              |   |                                                                         | 33,101                                                                    |   |   |   | 14,036 |   |
|                                                                                        |   |                                                                         |                                                                      |   |   |   |   |   |
| Cash flows from      investing activities:                                                  |   |                                                                         |                                                                      |   |   |   |   |   |
| Capital      expenditures                                                                   |   |                                                                         | (15,833                                                                   | ) |   |   | (11,085 | ) |
| Net      proceeds from sale of fixed assets                                                 |   |                                                                         | 916                                                                       |   |   |   | 1,521 |   |
| Proceeds      from net foreign investment hedges                                            |   |                                                                         | 6,818                                                                     |   |   |   | – |   |
| Purchase      of remaining interests in Hong Kong and Australian joint      ventures        |   |                                                                         | (278                                                                      | ) |   |   | – |   |
| Purchase      of Bayou and Corrpro, net of cash acquired                                    |   |                                                                         | (209,714                                                                  | ) |   |   | – |   |
| Net      cash used in investing activities of continuing operations                         |   |                                                                         | (218,091                                                                  | ) |   |   | (9,564 | ) |
| Net      cash provided by investing activities of discontinued      operations              |   |                                                                         | 750                                                                       |   |   |   | 1,339 |   |
| Net      cash used in investing activities                                                  |   |                                                                         | (217,341                                                                  | ) |   |   | (8,225 | ) |
|                                                                                        |   |                                                                         |                                                                      |   |   |   |   |   |
| Cash flows from      financing activities:                                                  |   |                                                                         |                                                                      |   |   |   |   |   |
| Net      proceeds from issuance of common stock                                             |   |                                                                         | 128,204                                                                   |   |   |   | 256 |   |
| Proceeds      from notes payable                                                            |   |                                                                         | –                                                                   |   |   |   | 2,580 |   |
| Principal      payments on notes payable                                                    |   |                                                                         | (2,438                                                                    | ) |   |   | (2,154 | ) |
| Principal      payments on long-term debt                                                   |   |                                                                         | (5,000                                                                    | ) |   |   | – |   |
| Dividend      paid to non-controlling interest                                              |   |                                                                         | (959                                                                      | ) |   |   | – |   |
| Proceeds      from long-term debt                                                           |   |                                                                         | 50,000                                                                    |   |   |   | – |   |
| Net      cash provided by financing activities                                              |   |                                                                         | 169,807                                                                   |   |   |   | 682 |   |
| Effect      of exchange rate changes on cash                                                |   |                                                                         | 5,775                                                                     |   |   |   | 4,608 |   |
| Net      increase (decrease) in cash and cash equivalents for the      period               |   |                                                                         | (8,658                                                                    | ) |   |   | 11,101 |   |
| Cash      and cash equivalents, beginning of period                                         |   |                                                                         | 99,321                                                                    |   |   |   | 78,961 |   |
| Cash      and cash equivalents, end of period                                               |   |                                                                         | $                90,663 |   |   |   | $               90,062 |   |

----

NOTES TO CONSOLIDATED FINANCIALSTATEMENTS

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

----

|                      |   | Three      Months Ended                                       |   |   | Nine      Months Ended                               |   |
|---------------------------|--------|---------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                      |   | September      30,                                            |   |   | September      30,                                   |   |
|                      |   |              2009      (2) |   |   |              2008 |   |   |              2009      (3) |   |   |              2008 |   |
|                      |   |                                                          |   |   |                                                 |   |   |   |   |   |   |   |
| Revenues                  |   |                                                          | N/A    |   |                                                 |   | $           219,295 |   |   |   | $           564,253 |   |   |   | $           634,540 |   |
| Net      income (loss)(1) |   |                                                          | N/A    |   |                                                 |   | 13,004 |   |   |   | (3,225 | ) |   |   | 29,166 |   |

|   | (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) | The      third quarter of 2009 is not pro forma information and has      been excluded from the table. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes      $9.7 million of non-recurring expense items related to after-tax      acquisition-related costs incurred by the Company, Bayou and Corrpro and      $8.2 million of after-tax expenses related to mark-to-market of Corrpro      warrants prior to the acquisition, early termination fees and the      write-off of deferred financing fees related to previously outstanding      Corrpro debt. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                          |   |            Bayou |                                   |   |            Corrpro |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------|----------------------------------------|--------|---------------------------------------------|--------|
| Cash      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                                  |   |                                        |   | – |   |
| Adjustment      for net working capital                                                       |   |                                      | (722                                   | )      |                                        |   | – |   |
| Total      consideration transferred                                                          |   |                                      | $         140,697       |   |                                        |   | $          91,549 |   |

----

|                                                                                               |   |            Bayou |                                                                         |   |            Corrpro |   |
|----------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
| Cash                                                                                               |   |                                      | $                  68 |   |                                        |   | $           14,186 |   |
| Receivables      and cost and estimated earnings in excess of billings                             |   |                                      | 17,979                                                                       |   |                                        |   | 31,824 |   |
| Inventory                                                                                          |   |                                      | 3,348                                                                        |   |                                        |   | 10,498 |   |
| Prepaid      expenses and other current assets                                                     |   |                                      | 1,143                                                                        |   |                                        |   | 2,538 |   |
| Property,      plant and equipment                                                                 |   |                                      | 50,816                                                                       |   |                                        |   | 14,973 |   |
| Identified      intangible assets                                                                  |   |                                      | 32,111                                                                       |   |                                        |   | 38,786 |   |
| Investments                                                                                        |   |                                      | 21,286                                                                       |   |                                        |   | – |   |
| Other      assets                                                                                  |   |                                      | 49                                                                           |   |                                        |   | 1,421 |   |
| Accounts      payable, accrued expenses and billings in excess of cost and estimated      earnings |   |                                      | (8,762                                                                       | )      |                                        |   | (28,622 | ) |
| Other      long-term liabilities                                                                   |   |                                      | (7,997                                                                       | )      |                                        |   | (20,897 | ) |
| Total identifiable net      assets                                                                 |   |                                      | 110,041                                                                      |   |                                        |   | 64,707 |   |
|                                                                                               |   |                                      |                                                                         |   |                                        |   |   |   |
| Total      consideration transferred                                                               |   |                                      | $         140,697                                             |   |                                        |   | $           91,549 |   |
| Less:  total      identifiable net assets                                                |   |                                      | 110,041                                                                      |   |                                        |   | 64,707 |   |
| Goodwill      at acquisition date                                                                  |   |                                      | 30,656                                                                       |   |                                        |   | 26,842 |   |

|                                                         |   |            Bayou |                             |   |            Corrpro |   |
|--------------------------------------------------------------|--------|-------------------------------------------|----------------------------------|--------|---------------------------------------------|--------|
| Total      identifiable net assets at June 30, 2009          |   |                                      | $         103,110 |   |                                        |   | $           67,768 |   |
| Inventory                                                    |   |                                      | –                          |   |                                        |   | – |   |
| Property,      plant and equipment                           |   |                                      | –                          |   |                                        |   | (302 | ) |
| Identifiable      intangible assets                          |   |                                      | –                          |   |                                        |   | – |   |
| Investments                                                  |   |                                      | (357                             | )      |                                        |   | – |   |
| Other      long-term liabilities                             |   |                                      | 5,110                            |   |                                        |   | (504 | ) |
| Other      adjustments to working capital                    |   |                                      | 2,178                            |   |                                        |   | (2,255 | ) |
| Total identifiable net assets      at September 30, 2009     |   |                                      | 110,041                          |   |                                        |   | 64,707 |   |
|                                                         |   |                                      |                             |   |                                        |   |   |   |
| Goodwill      at June 30, 2009                               |   |                                      | 38,309                           |   |                                        |   | 23,781 |   |
| Increase      (decrease) in goodwill related to acquisitions |   |                                      | (7,653                           | )      |                                        |   | 3,061 |   |
| Foreign      currency translation                            |   |                                      | –                          |   |                                        |   | 144 |   |
| Goodwill      at September 30, 2009                          |   |                                      | 30,656                           |   |                                        |   | 26,986 |   |

----

----

|                                                                                                                    |   | Three      Months Ended                                          |       |   | Nine      Months Ended                                           |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|--------|------------------------------------------------------------------|--------|
|                                                                                                                    |   | September      30,                                               |       |   | September      30,                                               |   |
|                                                                                                                    |   |                2009 |       |   |                2008 |   |   |                2009 |   |   |                2008 |   |
| Weighted      average number of common shares used for basic EPS                                                        |   |                                                             | 38,482,480 |   |                                                             |   | 27,490,413 |   |   |   | 36,665,437 |   |   |   | 27,559,721 |   |
| Effect      of dilutive stock options and restricted stock                                                              |   |                                                             | 543,592    |   |                                                             |   | 705,532 |   |   |   | 430,277 |   |   |   | 633,784 |   |
| Weighted      average number of common shares and dilutive   potential common      stock used in dilutive EPS |   |                                                             | 39,026,072 |   |                                                             |   | 28,195,945 |   |   |   | 37,095,714 |   |   |   | 28,193,505 |   |

----

|                                                        |   |                                            |          |   | As      of September 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 |                                            |   |   | $            (2,261 | ) |   |   | $           1,633 |   |   |   | $           3,894 |   |   |   | $            (2,139 | ) |   |   | $            1,755 |   |
| Contract      backlog                                       |   |                                            |        1 |   |                                                                                               |   | 3,010                                             |                                            |   |   | (1,182 | ) |   |   | 1,828 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Leases                                                      |   |                                            | 22            |   |                                                                                               |   | 1,237                                             |                                            |   |   | (25 | ) |   |   | 1,212 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Trademarks and     tradenames |   |                                            | 19            |   |                                                                                               |   | 14,400                                            |                                            |   |   | (387 | ) |   |   | 14,013 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Non-compete      agreements                                 |   |                                            |        2 |   |                                                                                               |   | 740                                               |                                            |   |   | (173 | ) |   |   | 567 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Customer      relationships                                 |   |                                            | 16            |   |                                                                                               |   | 53,307                                            |                                            |   |   | (2,474 | ) |   |   | 50,833 |   |   |   | 1,797 |   |   |   | (633 | ) |   |   | 1,164 |   |
| Patents                                                     |   |                                            | 16            |   |                                                                                               |   | 23,378                                            |                                            |   |   | (14,177 | ) |   |   | 9,201 |   |   |   | 21,431 |   |   |   | (13,997 | ) |   |   | 7,434 |   |
| Total                                                       |   |                                            |          |   |                                                                                               |   | $         99,966                   |                                            |   |   | $          (20,679 | ) |   |   | $         79,287 |   |   |   | $         27,122 |   |   |   | $          (16,769 | ) |   |   | $          10,353 |   |

|                                   |   |   |   |
|----------------------------------------|--------|--------|--------|
| Estimated      amortization expense:   |   |   |   |
| For year ending December 31,      2009 |   | $      | 5,676  |   |
| For year ending December 31,      2010 |   |   | 6,117  |   |
| For year ending December 31,      2011 |   |   | 4,736  |   |
| For year ending December 31,      2012 |   |   | 4,464  |   |
| For year ending December 31,      2013 |   |   | 4,452  |   |

----

|                                   |   |             Restricted     Awards |    |   |           Weighted          Average        Award Date        Fair Value |   |
|----------------------------------------|--------|-------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009    |   |                                                                                | 475,787 |   |                                                                                                                                |   | $              14.25 |   |
| Awarded                                |   |                                                                                | 426,951 |   |                                                                                                                                |   | 13.26 |   |
| Shares      distributed                |   |                                                                                | (28,381 | )      |                                                                                                                                |   | 18.64 |   |
| Forfeited                              |   |                                                                                | (22,249 | )      |                                                                                                                                |   | 14.29 |   |
| Outstanding      at September 30, 2009 |   |                                                                                | 852,108 |   |                                                                                                                                |   | $             13.60 |   |

----

|                                   |   |        Deferred       Stock       Units |    |   |        Weighted       Average       Award Date       Fair Value |   |
|----------------------------------------|--------|--------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009    |   |                                                   | 130,018 |   |                                                                                |   | $             18.46 |   |
| Awarded                                |   |                                                   | 35,426  |   |                                                                                |   | 16.25 |   |
| Shares      distributed                |   |                                                   | (21,645 | )      |                                                                                |   | 17.14 |   |
| Forfeited                              |   |                                                   | – |   |                                                                                |   | – |   |
| Outstanding      at September 30, 2009 |   |                                                   | 143,799 |   |                                                                                |   | $            18.09 |   |

|                                   |   |        Shares |      |   |        Weighted       Average       Exercise       Price |   |
|----------------------------------------|--------|--------------------|-----------|--------|------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009    |   |               | 1,032,773 |   |                                                                         |   | $            19.18 |   |
| Granted                                |   |               | 337,060   |   |                                                                         |   | 12.97 |   |
| Exercised                              |   |               | (25,353   | )      |                                                                         |   | 13.79 |   |
| Canceled/Expired                       |   |               | (121,328  | )      |                                                                         |   | 18.03 |   |
| Outstanding      at September 30, 2009 |   |               | 1,223,152 |   |                                                                         |   | $           17.72 |   |
| Exercisable      at September 30, 2009 |   |               | 689,224   |   |                                                                         |   | $           20.92 |   |

----

|                       |   | For      the Nine Months Ended September 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          |   |
| 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 September 30,                            |                                                                    |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                                                                                |   |                2009 |                                                                    |   |                2008 |   |
| Beginning      balance, July 1                                                                                      |   |                                                             | $             (1,208                 | ) |   |   | $                 (207 | ) |
| Expiration      of prior foreign currency forward   contracts included      in other comprehensive income |   |                                                             | 1,055                                                                   |   |   |   | – |   |
| Gain      included in other comprehensive income                                                                    |   |                                                             | 43                                                                      |   |   |   | 3,514 |   |
| Ending      balance, September 30                                                                                   |   |                                                             | $                (110 | ) |   |   | $               3,307 |   |

|                                                                                                                |   | Nine      Months Ended September 30,                             |                                                                          |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                                                                |   |                2009 |                                                                          |   |                2008 |   |
| Beginning      balance, January 1                                                                                   |   |                                                             | $               7,161            |   |   |   | $                   (55 | ) |
| Expiration      of prior foreign currency forward   contracts included      in other comprehensive income |   |                                                             | (6,818                                                                        | ) |   |   | – |   |
| (Loss)/gain      included in other comprehensive income                                                             |   |                                                             | (453                                                                          | ) |   |   | 3,362 |   |
| Ending      balance, September 30                                                                                   |   |                                                             |  $                (110 | ) |   |   | $               3,307 |   |

----

|                                         |   | Three      Months Ended September 30,          |                            |   | Nine      Months Ended September 30,           |   |
|----------------------------------------------|--------|------------------------------------------------|---------------------------------|--------|------------------------------------------------|--------|
|                                         |   |             2009 |                            |   |             2008 |   |   |             2009 |   |   |             2008 |   |
| Revenues                                     |   |                                           | $         (2,909 | )      |                                           |   | $         (584 | ) |   |   | $        (3,499 | ) |   |   | $        6,987 |   |
| Gross      loss                              |   |                                           | (3,141                          | )      |                                           |   | (995 | ) |   |   | (3,792 | ) |   |   | (1,729 | ) |
| Operating      expenses                      |   |                                           | 597                             |   |                                           |   | 1,260 |   |   |   | 1,553 |   |   |   | 2,321 |   |
| Closure      reversals of tunneling business |   |                                           | –                         |   |                                           |   | (300 | ) |   |   | – |   |   |   | (777 | ) |
| Operating      loss                          |   |                                           | (3,738                          | )      |                                           |   | (1,955 | ) |   |   | (5,345 | ) |   |   | (3,273 | ) |
| Loss      before tax benefits                |   |                                           | (3,562                          | )      |                                           |   | (1,955 | ) |   |   | (5,169 | ) |   |   | (2,902 | ) |
| Tax      benefits                            |   |                                           | (916                            | )      |                                           |   | (816 | ) |   |   | (1,233 | ) |   |   | (1,158 | ) |
| Net      loss                                |   |                                           | (2,646                          | )      |                                           |   | (1,139 | ) |   |   | (3,936 | ) |   |   | (1,744 | ) |

|                                                               |   |      September      30,                2009 |                                                                   |   |          December      31,                2008 |   |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                               |   |                                                                                                                   |                                                                   |   |                                                                                                                                          |   |
| Receivables,      net                                              |   |                                                                                                                   | $                160 |   |                                                                                                                                          |   | $                 2,235 |   |
| Retainage                                                          |   |                                                                                                                   | 3,930                                                                  |   |                                                                                                                                          |   | 5,917 |   |
| Claims      and costs and estimated earnings in excess of billings |   |                                                                                                                   | 1,627                                                                  |   |                                                                                                                                          |   | 5,104 |   |
| Prepaid      expenses and other current assets                     |   |                                                                                                                   | 135                                                                    |   |                                                                                                                                          |   | 448 |   |
| Property,      plant and equipment, less accumulated depreciation  |   |                                                                                                                   | 2,903                                                                  |   |                                                                                                                                          |   | 3,256 |   |
| Other      assets                                                  |   |                                                                                                                   | 3,136                                                                  |   |                                                                                                                                          |   | 2,587 |   |
| Total      assets                                                  |   |                                                                                                                   | $           11,891                            |   |                                                                                                                                          |   | $               19,547 |   |
|                                                               |   |                                                                                                                   |                                                                   |   |                                                                                                                                          |   |   |   |
| Current      liabilities                                           |   |                                                                                                                   | $             1,576                 |   |                                                                                                                                          |   | $                 1,541 |   |
| Other      liabilities                                             |   |                                                                                                                   | 1,142                                                                  |   |                                                                                                                                          |   | 818 |   |
| Total      liabilities                                             |   |                                                                                                                   | $             2,718                 |   |                                                                                                                                          |   | $                 2,359 |   |

----

|                                           |   | Three      Months EndedSeptember      30, |                                  |   | Nine      Months EndedSeptember      30, |   |
|------------------------------------------------|--------|-------------------------------------------|---------------------------------------|--------|------------------------------------------|--------|
|                                           |   |            2009  |                                  |   |            2008 |   |   |            2009 |   |   |            2008 |   |
|                                           |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |
| Revenues:                                      |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |
|  North      American Sewer Rehabilitation |   |                                      | $          94,858      |   |                                     |   | $         89,346 |   |   |   | $         259,049 |   |   |   | $         257,495 |   |
|  European      Sewer Rehabilitation       |   |                                      | 23,152                                |   |                                     |   | 27,055 |   |   |   | 62,067 |   |   |   | 79,313 |   |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                      | 9,811                                 |   |                                     |   | 1,768 |   |   |   | 22,154 |   |   |   | 5,459 |   |
|  Water      Rehabilitation                |   |                                      | 4,289                                 |   |                                     |   | 5,917 |   |   |   | 8,740 |   |   |   | 9,738 |   |
|  Energy      and Mining                   |   |                                      | 69,742                                |   |                                     |   | 13,791 |   |   |   | 161,050 |   |   |   | 47,385 |   |
| Total      revenues                            |   |                                      | $        201,852            |   |                                     |   | $       137,877 |   |   |   | $         513,060 |   |   |   | $         399,390 |   |
|                                           |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit (loss):                      |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|  North      American Sewer Rehabilitation |   |                                      | $          24,082 |   |                                     |   | $         20,184 |   |   |   | $           64,915 |   |   |   | $           56,405 |   |
|  European      Sewer Rehabilitation       |   |                                      | 6,212                                 |   |                                     |   | 5,941 |   |   |   | 16,354 |   |   |   | 15,936 |   |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                      | 2,614                                 |   |                                     |   | 614 |   |   |   | 6,382 |   |   |   | 1,699 |   |
|  Water      Rehabilitation                |   |                                      | 220                                   |   |                                     |   | 1,263 |   |   |   | (35 | ) |   |   | 1,692 |   |
|  Energy      and Mining                   |   |                                      | 19,994                                |   |                                     |   | 4,220 |   |   |   | 44,095 |   |   |   | 14,506 |   |
| Total      gross profit                        |   |                                      | $          53,122 |   |                                     |   | $         32,222 |   |   |   | $         131,711 |   |   |   | $           90,238 |   |
|                                           |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):                  |   |                                      |                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|  North      American Sewer Rehabilitation |   |                                      | $          10,322 |   |                                     |   | $           6,757 |   |   |   | $           25,844 |   |   |   | $           11,910 |   |
|  European      Sewer Rehabilitation       |   |                                      | 1,095                                 |   |                                     |   | 347 |   |   |   | 2,120 |   |   |   | (1,084 | ) |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                      | 613                                   |   |                                     |   | 368 |   |   |   | 2,407 |   |   |   | 722 |   |
|  Water      Rehabilitation                |   |                                      | (334                                  | )      |                                     |   | 482 |   |   |   | (2,371 | ) |   |   | (780 | ) |
|  Energy      and Mining                   |   |                                      | 6,008                                 |   |                                     |   | 2,320 |   |   |   | 3,253 |   |   |   | 8,976 |   |
| Total      operating income                    |   |                                      | $          17,704 |   |                                     |   | $         10,274 |   |   |   | $           31,253 |   |   |   | $           19,744 |   |

|                           |   | Three      Months Ended September      30, |                                                   |   | Nine      Months EndedSeptember      30, |   |
|--------------------------------|--------|-------------------------------------------------|--------------------------------------------------------|--------|------------------------------------------|--------|
|                           |   |            2009        |                                                   |   |            2008 |   |   |            2009 |   |   |            2008 |   |
|                           |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |
| Revenues:                      |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |
|   United      States |   |                                            | $         130,677                       |   |                                     |   | $           90,842 |   |   |   | $         345,553 |   |   |   | $         252,789 |   |
|   Canada             |   |                                            | 28,827                                                 |   |                                     |   | 12,649 |   |   |   | 63,469 |   |   |   | 38,557 |   |
|   Europe             |   |                                            | 27,966                                                 |   |                                     |   | 28,327 |   |   |   | 68,649 |   |   |   | 82,322 |   |
|   Other      foreign |   |                                            | 14,382                                                 |   |                                     |   | 6,059 |   |   |   | 35,389 |   |   |   | 25,722 |   |
| Total      revenues            |   |                                            | $         201,852                       |   |                                     |   | $         137,877 |   |   |   | $         513,060 |   |   |   | $         399,390 |   |
|                           |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit:             |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|   United      States |   |                                            | $           31,921            |   |                                     |   | $           20,181 |   |   |   | $           82,572 |   |   |   | $           54,635 |   |
|   Canada             |   |                                            | 9,146                                                  |   |                                     |   | 4,281 |   |   |   | 21,428 |   |   |   | 13,149 |   |
|   Europe             |   |                                            | 8,498                                                  |   |                                     |   | 6,211 |   |   |   | 17,934 |   |   |   | 16,380 |   |
|   Other      foreign |   |                                            | 3,557                                                  |   |                                     |   | 1,549 |   |   |   | 9,777 |   |   |   | 6,074 |   |
| Total      gross profit        |   |                                            | $           53,122            |   |                                     |   | $           32,222 |   |   |   | $         131,711 |   |   |   | $           90,238 |   |
|                           |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):  |   |                                            |                                                   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|   United      States |   |                                            | $             8,188 |   |                                     |   | $             6,587 |   |   |   | $             9,589 |   |   |   | $             8,845 |   |
|   Canada             |   |                                            | 6,804                                                  |   |                                     |   | 2,549 |   |   |   | 13,381 |   |   |   | 7,941 |   |
|   Europe             |   |                                            | 1,693                                                  |   |                                     |   | 391 |   |   |   | 3,945 |   |   |   | (630 | ) |
|   Other      foreign |   |                                            | 1,019                                                  |   |                                     |   | 747 |   |   |   | 4,338 |   |   |   | 3,588 |   |
| Total      operating income    |   |                                            | $           17,704            |   |                                     |   | $           10,274 |   |   |   | $           31,253 |   |   |   | $           19,744 |   |

----

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

----

----

|                                                                                                  |   |                               |                             |   |                               |   |                       |         Increase            |   |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------------------------------|--------|------------------------------------|--------|----------------------------|---------------------------------------|--------|
|                                                                                                  |   |           2009 |                             |   |           2008 |   |                       |            $ |   |   |   |            % |   |
| Three      Months Ended September 30,                                                                 |   |                               |                             |   |                               |   |                       |                                  |   |   |   |   |   |
|  Revenues                                                                                        |   |                               | $         201,852 |   |                               |   | $        137,877 |                                  |   |   | $          63,975 |   |   |   | 46.4 | % |
|  Gross      profit                                                                               |   |                               | 53,122                           |   |                               |   | 32,222                     |                                  |   |   | 20,900 |   |   |   | 64.9 |   |
|  Gross      margin                                                                               |   |                               | 26.3                             | %      |                               |   | 23.4                       | %                                     |   |   |   |   |   |   | 2.9 |   |
|  Operating      expenses                                                                         |   |                               | 35,418                           |   |                               |   | 21,948                     |                                  |   |   | 13,470 |   |   |   | 61.4 |   |
|  Operating      income                                                                           |   |                               | 17,704                           |   |                               |   | 10,274                     |                                  |   |   | 7,430 |   |   |   | 72.3 |   |
|  Operating      margin                                                                           |   |                               | 8.8                              | %      |                               |   | 7.5                        | %                                     |   |   |   |   |   |   | 1.3 |   |
|  Net      income from continuing operations   attributable to      common stockholders |   |                               | 11,793                           |   |                               |   | 7,791                      |                                  |   |   | 4,002 |   |   |   | 51.4 |   |
|                                                                                                  |   |                               |                             |   |                               |   |                       |                                  |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,                                                                  |   |                               |                             |   |                               |   |                       |                                  |   |   |   |   |   |   |   |   |
|  Revenues                                                                                        |   |                               | $         513,060 |   |                               |   | 399,390                    |                                  |   |   | $        113,670 |   |   |   | 28.5 | % |
|  Gross      profit                                                                               |   |                               | 131,711                          |   |                               |   | 90,238                     |                                  |   |   | 41,473 |   |   |   | 46.0 |   |
|  Gross      margin                                                                               |   |                               | 25.7                             | %      |                               |   | 22.6                       | %                                     |   |   |   |   |   |   | 3.1 |   |
|  Operating      expenses                                                                         |   |                               | 100,458                          |   |                               |   | 70,494                     |                                  |   |   | 29,964 |   |   |   | 42.5 |   |
|  Operating      income                                                                           |   |                               | 31,253                           |   |                               |   | 19,744                     |                                  |   |   | 11,509 |   |   |   | 58.3 |   |
|  Operating      margin                                                                           |   |                               | 6.1                              | %      |                               |   | 4.9                        | %                                     |   |   |   |   |   |   | 1.2 |   |
|  Net      income from continuing operations   attributable to      common stockholders |   |                               | 18,425                           |   |                               |   | 13,734                     |                                  |   |   | 4,691 |   |   |   | 34.2 |   |

----

|                                  |   |                                           |                                  |   |                                     |   |                            | Increase      (Decrease) |   |
|---------------------------------------|--------|------------------------------------------------|---------------------------------------|--------|------------------------------------------|--------|---------------------------------|--------------------------|--------|
|                                  |   |             2009 |                                  |   |            2008 |   |                            |  $                  |   |   |   | % |   |
| Three      Months Ended September 30, |   |                                           |                                  |   |                                     |   |                            |                     |   |   |   |   |   |
|  Revenues                        |   |                                           | $          94,858 |   |                                     |   | $         89,346 |                     |   |   | $         5,512 |   |   |   | 6.2 | % |
|  Gross      profit               |   |                                           | 24,082                                |   |                                     |   | 20,184                          |                     |   |   | 3,898 |   |   |   | 19.3 |   |
|  Gross      margin               |   |                                           | 25.4                                  | %      |                                     |   | 22.6                            | %                        |   |   |   |   |   |   | 2.8 |   |
|  Operating      expenses         |   |                                           | 13,760                                |   |                                     |   | 13,427                          |                     |   |   | 333 |   |   |   | 2.5 |   |
|  Operating      income           |   |                                           | 10,322                                |   |                                     |   | 6,757                           |                     |   |   | 3,565 |   |   |   | 52.8 |   |
|  Operating      margin           |   |                                           | 10.9                                  | %      |                                     |   | 7.6                             | %                        |   |   |   |   |   |   | 3.3 |   |
|                                  |   |                                           |                                  |   |                                     |   |                            |                     |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,  |   |                                           |                                  |   |                                     |   |                            |                     |   |   |   |   |   |   |   |   |
|  Revenues                        |   |                                           | $        259,049            |   |                                     |   | $  257,495            |                     |   |   | $         1,554 |   |   |   | 0.0 | % |
|  Gross      profit               |   |                                           | 64,915                                |   |                                     |   | 56,405                          |                     |   |   | 8,510 |   |   |   | 15.1 |   |
|  Gross      margin               |   |                                           | 25.1                                  | %      |                                     |   | 21.9                            | %                        |   |   |   |   |   |   | 3.2 |   |
|  Operating      expenses         |   |                                           | 39,071                                |   |                                     |   | 44,495                          |                     |   |   | (5,424 | ) |   |   | (12.2 | ) |
|  Operating      income           |   |                                           | 25,844                                |   |                                     |   | 11,910                          |                     |   |   | 13,934 |   |   |   | 117.0 |   |
|  Operating      margin           |   |                                           | 10.0                                  | %      |                                     |   | 4.6                             | %                        |   |   |   |   |   |   | 5.4 |   |

----

|                                  |   |                                                        |                                  |   |                                                       |   |                                  | Increase      (Decrease)        |   |
|---------------------------------------|--------|-------------------------------------------------------------|---------------------------------------|--------|------------------------------------------------------------|--------|---------------------------------------|---------------------------------|--------|
|                                  |   |                2009 |                                  |   |               2008 |   |                                  |     $  |   |   |   | % |   |
| Three      Months Ended September 30, |   |                                                        |                                  |   |                                                       |   |                                  |                            |   |   |   |   |   |
|  Revenues                        |   |                                                        | $          23,152      |   |                                                       |   | $          27,055 |                            |   |   | $          (3,903 | ) |   |   | (14.4 | )% |
|  Gross      profit               |   |                                                        | 6,212                                 |   |                                                       |   | 5,941                                 |                            |   |   | 271 |   |   |   | 4.6 |   |
|  Gross      margin               |   |                                                        | 26.8                                  | %      |                                                       |   | 22.0                                  | %                               |   |   |   |   |   |   | 4.8 |   |
|  Operating      expenses         |   |                                                        | 5,117                                 |   |                                                       |   | 5,594                                 |                            |   |   | (477 | ) |   |   | (8.5 | ) |
|  Operating      income           |   |                                                        | 1,095                                 |   |                                                       |   | 347                                   |                            |   |   | 748 |   |   |   | 215.6 |   |
|  Operating      margin           |   |                                                        | 4.7                                   | %      |                                                       |   | 1.3                                   | %                               |   |   |   |   |   |   | 3.4 |   |
|                                  |   |                                                        |                                  |   |                                                       |   |                                  |                            |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,  |   |                                                        |                                  |   |                                                       |   |                                  |                            |   |   |   |   |   |   |   |   |
|  Revenues                        |   |                                                        | $          62,067 |   |                                                       |   | $     79,313 |                            |   |   | $        (17,246 | ) |   |   | (21.7 | )% |
|  Gross      profit               |   |                                                        | 16,354                                |   |                                                       |   | 15,936                                |                            |   |   | 418 |   |   |   | 2.6 |   |
|  Gross      margin               |   |                                                        | 26.3                                  | %      |                                                       |   | 20.1                                  | %                               |   |   |   |   |   |   | 6.2 |   |
|  Operating      expenses         |   |                                                        | 14,234                                |   |                                                       |   | 17,020                                |                            |   |   | (2,786 | ) |   |   | (16.4 | ) |
|  Operating      income (loss)    |   |                                                        | 2,120                                 |   |                                                       |   | (1,084                                | )                               |   |   | 3,204 |   |   |   | 295.6 |   |
|  Operating      margin           |   |                                                        | 3.4                                   | %      |                                                       |   | (1.4                                  | )%                              |   |   |   |   |   |   | 4.8 |   |

----

----

|                                  |   |                                                             |                                       |   |                                                 |   |                                 |           Increase (Decrease) |   |
|---------------------------------------|--------|------------------------------------------------------------------|--------------------------------------------|--------|------------------------------------------------------|--------|--------------------------------------|---------------------------------------------------|--------|
|                                  |   |                2009 |                                       |   |              2008 |   |                                 |             $       |   |   |   |            % |   |
| Three      Months Ended September 30, |   |                                                             |                                       |   |                                                 |   |                                 |                                              |   |   |   |   |   |
|  Revenues                        |   |                                                             | $           9,811 |   |                                                 |   | $          1,768 |                                              |   |   | $          8,043 |   |   |   | 454.9 | % |
|  Gross      profit               |   |                                                             | 2,614                                      |   |                                                 |   | 614                                  |                                              |   |   | 2,000 |   |   |   | 325.7 |   |
|  Gross      margin               |   |                                                             | 26.6                                       | %      |                                                 |   | 34.7                                 | %                                                 |   |   |   |   |   |   | (8.1 | ) |
|  Operating      expenses         |   |                                                             | 2,001                                      |   |                                                 |   | 246                                  |                                              |   |   | 1,755 |   |   |   | 713.4 |   |
|  Operating      income           |   |                                                             | 613                                        |   |                                                 |   | 368                                  |                                              |   |   | 245 |   |   |   | 66.5 |   |
|  Operating      margin           |   |                                                             | 6.2                                        | %      |                                                 |   | 20.8                                 | %                                                 |   |   |   |   |   |   | (14.6 | ) |
|                                  |   |                                                             |                                       |   |                                                 |   |                                 |                                              |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,  |   |                                                             |                                       |   |                                                 |   |                                 |                                              |   |   |   |   |   |   |   |   |
|  Revenues                        |   |                                                             | $    22,154            |   |                                                 |   | $          5,459 |                                              |   |   | $        16,695 |   |   |   | 305.8 | % |
|  Gross      profit               |   |                                                             | 6,382                                      |   |                                                 |   | 1,699                                |                                              |   |   | 4,683 |   |   |   | 275.6 |   |
|  Gross      margin               |   |                                                             | 28.8                                       | %      |                                                 |   | 31.1                                 | %                                                 |   |   |   |   |   |   | (2.3 | ) |
|  Operating      expenses         |   |                                                             | 3,975                                      |   |                                                 |   | 977                                  |                                              |   |   | 2,998 |   |   |   | 306.9 |   |
|  Operating      income           |   |                                                             | 2,407                                      |   |                                                 |   | 722                                  |                                              |   |   | 1,685 |   |   |   | 233.4 |   |
|  Operating      margin           |   |                                                             | 10.9                                       | %      |                                                 |   | 13.2                                 | %                                                 |   |   |   |   |   |   | (2.3 | ) |

----

|                                  |   |                                                 |                                 |   |                                           |   |                           | Increase      (Decrease)                                |   |
|---------------------------------------|--------|------------------------------------------------------|--------------------------------------|--------|------------------------------------------------|--------|--------------------------------|---------------------------------------------------------|--------|
|                                  |   |              2009 |                                 |   |             2008 |   |                           |               $ |   |   |    |         % |   |
| Three      Months Ended September 30, |   |                                                 |                                 |   |                                           |   |                           |                                                    |   |   |   |   |   |
|  Revenues                        |   |                                                 | $          4,289 |   |                                           |   | $         5,917 |                                                    |   |   | $        (1,628 | ) |   |   | (27.5 | )% |
|  Gross      profit               |   |                                                 | 220                                  |   |                                           |   | 1,263                          |                                                    |   |   | (1,043 | ) |   |   | (82.6 | ) |
|  Gross      margin               |   |                                                 | 5.1                                  | %      |                                           |   | 21.3                           | %                                                       |   |   |   |   |   |   | (16.2 | ) |
|  Operating      expenses         |   |                                                 | 554                                  |   |                                           |   | 781                            |                                                    |   |   | (227 | ) |   |   | (29.1 | ) |
|  Operating      income (loss)    |   |                                                 | (334                                 | )      |                                           |   | 482                            |                                                    |   |   | (816 | ) |   |   | (169.3 | ) |
|  Operating      margin           |   |                                                 | (7.8                                 | )%     |                                           |   | 8.2                            | %                                                       |   |   |   |   |   |   | (16.0 | ) |
|                                  |   |                                                 |                                 |   |                                           |   |                           |                                                    |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,  |   |                                                 |                                 |   |                                           |   |                           |                                                    |   |   |   |   |   |   |   |   |
|  Revenues                        |   |                                                 | $          8,740 |   |                                           |   | $         9,738 |                                                    |   |   | $           (998 | ) |   |   | (10.3 | )% |
|  Gross      profit (loss)        |   |                                                 | (35                                  | )      |                                           |   | 1,692                          |                                                    |   |   | (1,727 | ) |   |   | (102.1 | ) |
|  Gross      margin               |   |                                                 | (0.4                                 | )%     |                                           |   | 17.4                           | %                                                       |   |   |   |   |   |   | (17.8 | ) |
|  Operating      expenses         |   |                                                 | 2,336                                |   |                                           |   | 2,472                          |                                                    |   |   | (136 | ) |   |   | (5.5 | ) |
|  Operating      loss             |   |                                                 | (2,371                               | )      |                                           |   | (780                           | )                                                       |   |   | (1,591 | ) |   |   | (204.0 | ) |
|  Operating      margin           |   |                                                 | (27.1                                | )%     |                                           |   | (8.0                           | )%                                                      |   |   |   |   |   |   | (19.1 | ) |

----

|                                    |   |                                           |                              |   |                                           |   |                            |           Increase (Decrease) |   |
|-----------------------------------------|--------|------------------------------------------------|-----------------------------------|--------|------------------------------------------------|--------|---------------------------------|---------------------------------------------------|--------|
|                                    |   |             2009 |                              |   |             2008 |   |                            |              $ |   |   |   |        % |   |
| Three      Months Ended September 30,   |   |                                           |                              |   |                                           |   |                            |                                              |   |   |   |   |   |
|  Revenues                          |   |                                           | $           69,742 |   |                                           |   | $         13,791 |                                              |   |   | $          55,951 |   |   |   | 405.7 | % |
|  Gross      profit                 |   |                                           | 19,994                            |   |                                           |   | 4,220                           |                                              |   |   | 15,774 |   |   |   | 373.8 |   |
|  Gross      margin                 |   |                                           | 28.7                              | %      |                                           |   | 30.6                            | %                                                 |   |   |   |   |   |   | (1.9 | ) |
|  Operating      expenses           |   |                                           | 13,986                            |   |                                           |   | 1,900                           |                                              |   |   | 12,086 |   |   |   | 636.1 |   |
|  Operating      income             |   |                                           | 6,008                             |   |                                           |   | 2,320                           |                                              |   |   | 3,688 |   |   |   | 159.0 |   |
|  Operating      margin             |   |                                           | 8.6                               | %      |                                           |   | 16.8                            | %                                                 |   |   |   |   |   |   | (8.2 | ) |
|                                    |   |                                           |                              |   |                                           |   |                            |                                              |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,    |   |                                           |                              |   |                                           |   |                            |                                              |   |   |   |   |   |   |   |   |
|  Revenues                          |   |                                           | $         161,050  |   |                                           |   | $         47,385 |                                              |   |   | $        113,665 |   |   |   | 239.9 | % |
|  Gross      profit                 |   |                                           | 44,095                            |   |                                           |   | 14,506                          |                                              |   |   | 29,589 |   |   |   | 204.0 |   |
|  Gross      margin                 |   |                                           | 27.4                              | %      |                                           |   | 30.6                            | %                                                 |   |   |   |   |   |   | (3.2 | ) |
|  Acquisition      related expenses |   |                                           | 6,619                             |   |                                           |   | –                         |                                              |   |   | 6,619 |   |   |   | 100.0 |   |
|  Operating      expenses           |   |                                           | 34,223                            |   |                                           |   | 5,530                           |                                              |   |   | 28,693 |   |   |   | 518.9 |   |
|  Operating      income             |   |                                           | 3,253                             |   |                                           |   | 8,976                           |                                              |   |   | (5,723 | ) |   |   | (63.8 | ) |
|  Operating      margin             |   |                                           | 2.0                               | %      |                                           |   | 18.9                            | %                                                 |   |   |   |   |   |   | (16.9 | ) |

----

----

----

| Backlog                                         |   |    September      30,2009 |                                             |   |          June 30,        2009 |   |                                       |           March 31,        2009 |   |   |         December 31,        2008   |   |   |         September 30,        2008 |                                             |
|-------------------------------------------------|--------|------------------------------------------|--------------------------------------------------|--------|--------------------------------------------------------|--------|--------------------------------------------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-------------------------------------------------------|--------------------------------------------------|
| (in      millions)                              |   |
| North      American sewer rehabilitation        |   |                                     | $            183.8 |   |                                                   |   | $           206.8 |                                                          |   |   | $             160.4 |   |   |                                                  | $            150.8 |   |   |   | $            178.5 |   |
| European      sewer rehabilitation              |   |                                     | 40.7                                             |   |                                                   |   | 40.9                                       |                                                          |   |   | 26.1                                                   |   |   |                                                  | 25.2                                             |   |   |   | 30.7 |   |
| Asia-Pacific      sewer rehabilitation      (1) |   |                                     | 84.5                                             |   |                                                   |   | 60.9                                       |                                                          |   |   | 40.1                                                   |   |   |                                                  | 46.2                                             |   |   |   | 53.6 |   |
| Water      rehabilitation                       |   |                                     | 7.5                                              |   |                                                   |   | 7.7                                        |                                                          |   |   | 8.9                                                    |   |   |                                                  | 8.2                                              |   |   |   | 6.7 |   |
| Energy      and mining (2)                      |   |                                     | 151.2                                            |   |                                                   |   | 146.1                                      |                                                          |   |   | 153.2                                                  |   |   |                                                  | 18.7                                             |   |   |   | 23.4 |   |
| Total                                           |   |                                     | $            467.7 |   |                                                   |   | $           462.4 |                                                          |   |   | $             388.7 |   |   |                                                  | $            249.1 |   |   |   | $            292.9 |   |

| (1)   | Contract      backlog for our Asia-Pacific Sewer Rehabilitation segment includes backlog      for our recently acquired interests in our joint ventures in Hong Kong and      Australia of $13.9 million and $35.1 million, respectively, at September      30, 2009, and $17.7 million and $6.9 million, respectively at June 30,      2009.  Contract backlog for these operations were not included      prior to June 30, 2009, as they were not consolidated      operations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Contract      backlog for our Energy and Mining segment includes backlog of our recently      acquired Bayou and Corrpro businesses of $64.8 million and $59.0 million,      respectively, at September 30, 2009, $66.8 million and $64.5 million,      respectively, at June 30, 2009 and $76.7 million and $62.2 million,      respectively, as of March 31, 2009.  Such operations were not      part of our company as of December 31, 2008 or September 30,      2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | September      30,2009 |                                  |   | December      31,2008 |   |
|--------------------------------|--------|------------------------|---------------------------------------|--------|-----------------------|--------|
|                           |   | (in      thousands)    |                                  |
| Cash      and cash equivalents |   |                   | $          90,663 |   |                  |   | $         99,321 |   |
| Restricted      cash           |   |                   | 2,072                                 |   |                  |   | 1,829 |   |

----

----

|                              Payments Due by      Period |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Cash      Obligations(1)(2)(3)                                                                                                                                                                            |   |                   Total |   |   |                  2009 |   |   |                       2010 |   |   |                      2011 |   |   |                    2012 |   |   |                  2013 |   |   |           Thereafter |   |
| Long-term      debt                                                                                                                                                                                       |   |   | $        110,000 |   |   |   | $         2,500 |   |   |   | $        10,000 |   |   |   | $        10,000 |   |   |   | $        22,500 |   |   |   | $        65,000 |   |   |   | $                  - |   |
| Interest      on long-term debt                                                                                                                                                                           |   |   | 20,176 |   |   |   | 2,551 |   |   |   | 5,707 |   |   |   | 5,331 |   |   |   | 4,462 |   |   |   | 2,125 |   |   |   | - |   |
| Operating      leases                                                                                                                                                                                     |   |   | 37,681 |   |   |   | 6,089 |   |   |   | 12,981 |   |   |   | 8,814 |   |   |   | 4,953 |   |   |   | 2,995 |   |   |   | 1,849 |   |
| Total      contractual cash obligations                                                                                                                                                                   |   |   | $        167,857 |   |   |   | $  11,140 |   |   |   | $        28,688 |   |   |   | $        24,145 |   |   |   | $        31,915 |   |   |   | $        70,120 |   |   |   | $          1,849 |   |

|  | (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) | As      of September 30, 2009, we had borrowed the entire amount of the $50.0      million term loan. We also had $22.4 million for non-interest bearing      letters of credit outstanding as of September 30, 2009, $13.6 million of      which was collateral for insurance, $1.4 million of which was collateral      for work performance obligations, $4.5 million of which was for security      in support of working capital, leasing and performance bonding needs for      IPPL and IAL and $2.9 million of which was in support of international      trade transactions. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | · | significant      negative industry or economictrends; |
|--------|--------|-------------------------------------------------------|

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

|                                     |   |   |   |
|------------------------------------------|--------|--------|--------|
| North      American Sewer Rehabilitation |   | $      | 102.3  |   |
| European      Sewer Rehabilitation       |   |   | 19.7   |   |
| Asia-Pacific      Sewer Rehabilitation   |   |   | 3.3    |   |
| Energy      and Mining                   |   |   | 58.7   |   |
| Total Goodwill                           |   | $      | 184.0  |   |

----

Quantitative

----

Item 4.   Controls and Procedures

----

Item 1.    LegalProceedings

Item 1A.    Risk Factors

Item 6.    Exhibits

----

SIGNATURE

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

----

INDEX TO EXHIBITS

| 10.1 | First      Amendment to Credit Agreement dated as of October 15, 2009 among the      Company and Bank of America, N.A., as Administrative Agent, and each of      the lenders listed therein, filedherewith. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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