----

----

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

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

----

----

| PART      I—FINANCIAL INFORMATION                                                                       |   |
|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                          |   |
| Item 1. Financial      Statements:                                                                       |   |
|                                                                                                          |   |
| Consolidated Statements of Operations for the Three      Months Ended March 31, 2009 and 2008                 | 3      |
|                                                                                                          |   |
| Consolidated      Balance Sheets as of March 31, 2009 and December 31,    2008                                | 4      |
|                                                                                                          |   |
| Consolidated Statements of Equity for      the Three Months Ended March 31, 2009    and  2008       | 5      |
|                                                                                                          |   |
| Consolidated      Statements of Cash Flows for the Three Months Ended March 31, 2009 and      2008            | 6      |
|                                                                                                          |   |
| Notes to      Consolidated Financial Statements                                                               | 7      |
|                                                                                                          |   |
| Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of      Operations | 19     |
|                                                                                                          |   |
| Item      3. Quantitative and Qualitative Disclosures About Market      Risk                             | 30     |
|                                                                                                          |   |
| Item      4. Controls and Procedures                                                                     | 31     |
|                                                                                                          |   |
| PART      II—OTHER INFORMATION                                                                          |   |
|                                                                                                          |   |
| Item      1. Legal Proceedings                                                                           | 32     |
|                                                                                                          |   |
| Item      1A. Risk Factors                                                                               | 32     |
|                                                                                                          |   |
| Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds                            | 32     |
|                                                                                                          |   |
| Item      4. Submission of Matters to a Vote of Security      Holders                                    | 32     |
|                                                                                                          |   |
| Item      6. Exhibits                                                                                    | 32     |
|                                                                                                          |   |
| SIGNATURE                                                                                                     | 33     |
|                                                                                                          |   |
| INDEX TO EXHIBITS                                                                                             | 34     |

----

CONSOLIDATED STATEMENTS OF OPERATIONS 

|                                                                      |   | For      the Three MonthsEnded      March 31, |                                                               |
|---------------------------------------------------------------------------|--------|-----------------------------------------------|--------------------------------------------------------------------|
|                                                                      |   |           2009            |                                                               |   |          2008 |   |
|                                                                      |   |                                          |                                                               |   |   |   |
| Revenues                                                                  |   |                                          | $          128,012                             |   |   |   | $          125,927 |   |
| Cost      of revenues                                                     |   |                                          | 97,339                                                             |   |   |   | 99,041 |   |
| Gross      profit                                                         |   |                                          | 30,673                                                             |   |   |   | 26,886 |   |
| Acquisition-related      costs                                            |   |                                          | 8,219                                                              |   |   |   | – |   |
| Operating      expenses                                                   |   |                                          | 22,375                                                             |   |   |   | 23,631 |   |
| Operating      income                                                     |   |                                          | 79                                                                 |   |   |   | 3,255 |   |
| Other      income (expense):                                              |   |                                          |                                                               |   |   |   |   |   |
| Interest      expense                                                     |   |                                          | (1,124                                                             | ) |   |   | (1,227 | ) |
| Interest      income                                                      |   |                                          | 349                                                                |   |   |   | 848 |   |
| Other                                                                     |   |                                          | (82                                                                | ) |   |   | 767 |   |
| Total      other income (expense)                                         |   |                                          | (857                                                               | ) |   |   | 388 |   |
| Income      (loss) before taxes                                           |   |                                          | (778                                                               | ) |   |   | 3,643 |   |
| Taxes      on income (benefit)                                            |   |                                          | (411                                                               | ) |   |   | 1,074 |   |
| Income      (loss) before equity in losses of affiliated companies        |   |                                          | (367                                                               | ) |   |   | 2,569 |   |
| Equity      in losses of affiliated companies, net of tax                 |   |                                          | (315                                                               | ) |   |   | (383 | ) |
| Income      (loss) before discontinued operations                         |   |                                          | (682                                                               | ) |   |   | 2,186 |   |
| Loss      from discontinued operations, net of tax                        |   |                                          | (98                                                                | ) |   |   | (87 | ) |
| Net      income (loss)                                                    |   |                                          | (780                                                               | ) |   |   | 2,099 |   |
| Less:       net income attributable to noncontrolling interests |   |                                          | 425                                                                |   |   |   | 156 |   |
| Net      income (loss) attributable to common stockholders                |   |                                          | $             (1,205            | ) |   |   | $            1,943 |   |
|                                                                      |   |                                          |                                                               |   |   |   |   |   |
| Earnings      (loss) per share attributable to common stockholders:       |   |                                          |                                                               |   |   |   |   |   |
| Basic:                                                                    |   |                                          |                                                               |   |   |   |   |   |
| Income      (loss) from continuing operations                             |   |                                          | $               (0.04 | ) |   |   | $              0.07 |   |
| Loss      from discontinued operations                                    |   |                                          | (0.00                                                              | ) |   |   | (0.00 | ) |
| Net      income (loss)                                                    |   |                                          | $               (0.04 | ) |   |   | $              0.07 |   |
| Diluted:                                                                  |   |                                          |                                                               |   |   |   |   |   |
| Income      (loss) from continuing operations                             |   |                                          | $               (0.04 | ) |   |   | $              0.07 |   |
| Loss      from discontinued operations                                    |   |                                          | (0.00                                                              | ) |   |   | (0.00 | ) |
| Net      income (loss)                                                    |   |                                          | $               (0.04 | ) |   |   | $              0.07 |   |

----

|                                                                                                                                                                |   |        March 31,       2009 |                                              |   |        December 31,       2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------------------------------------------------|--------|------------------------------------------|--------|
|                                                                                                                                                                |   |                                  |                                              |   |                                     |   |
| Assets                                                                                                                                                              |   |                                  |                                              |   |                                     |   |
|  Current      assets                                                                                                                                           |   |                                  |                                              |   |                                     |   |
|      Cash      and cash equivalents                                                                                                        |   |                                  | $            77,471 |   |                                     |   | $            99,321 |   |
|      Restricted      cash                                                                                                                  |   |                                  | 1,378                                             |   |                                     |   | 1,829 |   |
|  Receivables,      net                                                                                                                                         |   |                                  | 127,353                                           |   |                                     |   | 97,257 |   |
|  Retainage                                                                                                                                                     |   |                                  | 20,141                                            |   |                                     |   | 21,380 |   |
|  Costs      and estimated earnings in excess of billings                                                                                                       |   |                                  | 57,522                                            |   |                                     |   | 37,224 |   |
|  Inventories                                                                                                                                                   |   |                                  | 30,431                                            |   |                                     |   | 16,320 |   |
|  Prepaid      expenses and other assets                                                                                                                        |   |                                  | 34,992                                            |   |                                     |   | 37,637 |   |
|  Current      assets of discontinued operations                                                                                                                |   |                                  | 11,784                                            |   |                                     |   | 13,704 |   |
|  Total      current assets                                                                                                                                     |   |                                  | 361,072                                           |   |                                     |   | 324,672 |   |
|  Property, plant and      equipment, less accumulated depreciation                                                                                             |   |                                  | 131,506                                           |   |                                     |   | 71,423 |   |
|  Other      assets                                                                                                                                             |   |                                  |                                              |   |                                     |   |   |   |
|  Goodwill                                                                                                                                                      |   |                                  | 179,083                                           |   |                                     |   | 122,961 |   |
|  Identified      intangible assets, less accumulated amortization                                                                                              |   |                                  | 75,485                                            |   |                                     |   | 10,353 |   |
|  Investments      in affiliated companies                                                                                                                      |   |                                  | 32,432                                            |   |                                     |   | 6,769 |   |
|  Other      assets                                                                                                                                             |   |                                  | 16,237                                            |   |                                     |   | 7,285 |   |
|  Total      other assets                                                                                                                                       |   |                                  | 303,237                                           |   |                                     |   | 147,368 |   |
|  Non-current      assets of discontinued operations                                                                                                            |   |                                  | 5,026                                             |   |                                     |   | 5,843 |   |
|                                                                                                                                                                |   |                                  |                                              |   |                                     |   |   |   |
| Total      Assets                                                                                                                                                   |   |                                  | $          800,841            |   |                                     |   | $          549,306 |   |
|                                                                                                                                                                |   |                                  |                                              |   |                                     |   |   |   |
| Liabilities and Equity                                                                                                                                              |   |                                  |                                              |   |                                     |   |   |   |
|  Current      liabilities                                                                                                                                      |   |                                  |                                              |   |                                     |   |   |   |
|      Accounts      payable and accrued expenses                                                                                            |   |                                  | $          130,030            |   |                                     |   | $            97,593 |   |
|      Billings      in excess of costs and estimated earnings                                                                               |   |                                  | 9,529                                             |   |                                     |   | 9,596 |   |
|      Current      maturities of long-term debt and line of credit                                                                          |   |                                  | 17,500                                            |   |                                     |   | – |   |
|      Notes      payable                                                                                                                    |   |                                  | 1,941                                             |   |                                     |   | 938 |   |
|      Current      liabilities of discontinued operations                                                                                   |   |                                  | 1,329                                             |   |                                     |   | 1,541 |   |
|  Total      current liabilities                                                                                                                                |   |                                  | 160,329                                           |   |                                     |   | 109,668 |   |
|  Long-term debt,      less current maturities                                                                                                                  |   |                                  | 105,000                                           |   |                                     |   | 65,000 |   |
|  Other      liabilities                                                                                                                                        |   |                                  | 33,336                                            |   |                                     |   | 2,831 |   |
|  Non-current      liabilities of discontinued operations                                                                                                       |   |                                  | 887                                               |   |                                     |   | 818 |   |
|  Total      liabilities                                                                                                                                        |   |                                  | 299,552                                           |   |                                     |   | 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   38,830,853 and      27,977,785, respectively |   |                                  | 388                                               |   |                                     |   | 280 |   |
|  Additional      paid-in capital                                                                                                                               |   |                                  | 239,332                                           |   |                                     |   | 109,235 |   |
|  Retained      earnings                                                                                                                                        |   |                                  | 259,411                                           |   |                                     |   | 260,616 |   |
|  Accumulated      other comprehensive loss                                                                                                                     |   |                                  | (1,246                                            | )      |                                     |   | (2,154 | ) |
|  Total      stockholders’ equity before noncontrolling interests                                                                                         |   |                                  | 497,885                                           |   |                                     |   | 367,977 |   |
|      Noncontrolling      interests                                                                                                         |   |                                  | 3,404                                             |   |                                     |   | 3,012 |   |
|  Total      equity                                                                                                                                             |   |                                  | 501,289                                           |   |                                     |   | 370,989 |   |
|                                                                                                                                                                |   |                                  |                                              |   |                                     |   |   |   |
| Total      Liabilities and Equity                                                                                                                                   |   |                                  | $          800,841            |   |                                     |   | $          549,306 |   |

----

INSITUFORM TECHNOLOGIES, INC. ANDSUBSIDIARIES

|                                                                   |   |   Common      Stock |       |   | AdditionalPaid-InCapital |   |                                                             |  RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome      (Loss) |   |   | Noncontrolling      Interests |                                         |   |  TotalEquity |   |                                                                           |  ComprehensiveIncome      (Loss) |   |
|------------------------------------------------------------------------|--------|-------------------------------|------------|--------|--------------------------|--------|------------------------------------------------------------------|------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------------------|----------------------------------------------|--------|-------------------|--------|--------------------------------------------------------------------------------|---------------------------------------|--------|
|                                                                   |   | Shares                        |       |   | Amount                   |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |
| BALANCE,      December 31, 2007                                        |   |                          | 27,470,623 |   |                     |   | $               275      |                   |   |   | $           104,332    |   |   |                          | $           238,976 |   |              |   | $                 8,958 |                                  |   |   | $               2,717 |   |   |   | $          355,258 |   |   |   |   |
|                                                                   |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                        |   |                          | –    |   |                     |   | –                                                          |                   |   |   | –                                         |   |   |                          | 1,943                                        |   |              |   | –                                                                        |                                  |   |   | 156 |   |   |   | 2,099 |   |   |   | $              2,099 |   |
| Distribution      of shares pursuant to Deferred Stock Unit awards     |   |                          | 17,382     |   |                     |   | –                                                          |                   |   |   | –                                         |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | – |   |   |   |   |   |
| Restricted      stock units issued                                     |   |                          | 286,677    |   |                     |   | 3                                                                |                   |   |   | –                                         |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | 3 |   |   |   | – |   |
| Amortization      and forfeitures of restricted stock shares and units |   |                          | (24,005    | )      |                     |   | –                                                          |                   |   |   | (13                                             | )      |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | (13 | ) |   |   | – |   |
| Equity      based compensation expense                                 |   |                          | –    |   |                     |   | –                                                          |                   |   |   | 901                                             |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | 901 |   |   |   | – |   |
| Foreign      currency translation adjustment                           |   |                          | –    |   |                     |   | –                                                          |                   |   |   | –                                         |   |   |                          | –                                      |   |              |   | 1,659                                                                          |                                  |   |   | 22 |   |   |   | 1,681 |   |   |   | 1,681 |   |
| Total      comprehensive income                                        |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   | $              3,780 |   |
| BALANCE,      March 31, 2008                                           |   |                          | 27,750,677 |   |                     |   | $               278 |                   |   |   | $           105,220    |   |   |                          | $           240,919 |   |              |   | $               10,617            |                                  |   |   | $               2,895 |   |   |   | $          359,929 |   |   |   |   |   |
|                                                                   |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE,      December 31, 2008                                        |   |                          | 27,977,785 |   |                     |   | $               280 |                   |   |   | $           109,235    |   |   |                          | $           260,616 |   |              |   | $                (2,154      | )                                     |   |   | $               3,012 |   |   |   | $          370,989 |   |   |   |   |   |
| Net      income (loss)                                                 |   |                          | –    |   |                     |   | –                                                          |                   |   |   | –                                         |   |   |                          | (1,205                                       | )      |              |   | –                                                                        |                                  |   |   | 425 |   |   |   | (780 | ) |   |   | $                (780 | ) |
| Issuance      of common stock                                          |   |                          | 10,499,766 |   |                     |   | 105                                                              |                   |   |   | 130,226                                         |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | 130,331 |   |   |   | – |   |
| Restricted      stock units issued                                     |   |                          | 383,615    |   |                     |   | 4                                                                |                   |   |   | –                                         |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | 4 |   |   |   | – |   |
| Amortization      and forfeitures of restricted stock shares and units |   |                          | (30,313    | )      |                     |   | (1                                                               | )                      |   |   | –                                         |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | (1 | ) |   |   | – |   |
| Stock      offering costs                                              |   |                          | –    |   |                     |   | –                                                          |                   |   |   | (997                                            | )      |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | (997 | ) |   |   | – |   |
| Equity      based compensation expense                                 |   |                          | –    |   |                     |   | –                                                          |                   |   |   | 868                                             |   |   |                          | –                                      |   |              |   | –                                                                        |                                  |   |   | – |   |   |   | 868 |   |   |   | – |   |
| Foreign      currency translation adjustment                           |   |                          | –    |   |                     |   | –                                                          |                   |   |   | –                                         |   |   |                          | –                                      |   |              |   | 908                                                                            |                                  |   |   | (33) |   |   |   | 875 |   |   |   | 875 |   |
| Total      comprehensive income (loss)                                 |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   | $                   95 |   |
| BALANCE,      March 31, 2009                                           |   |                          | 38,830,853 |   |                     |   | $               388 |                   |   |   | $           239,332    |   |   |                          | $           259,411 |   |              |   | $                (1,246      | )                                     |   |   | $               3,404 |   |   |   | $          501,289 |   |   |   |   |   |
|                                                                   |   |                          |       |   |                     |   |                                                             |                   |   |   |                                            |   |   |                          |                                         |   |              |   |                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                        |   | For      the Three MonthsEnded      March 31, |                                              |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------------------------------------------------|
|                                                                                        |   |         2009                        |                                              |   |         2008 |   |
|                                                                                        |   |                                          |                                              |   |   |   |
| Cash flows from      operating activities:                                                  |   |                                          |                                              |   |   |   |
| Net      income (loss) attributable to common stockholders                                  |   |                                          | $            (1,205 | ) |   |   | $             1,943 |   |
| Loss      from discontinued operations                                                      |   |                                          | (98                                               | ) |   |   | (87 | ) |
| Income      (loss) from continuing operations                                               |   |                                          | (1,107                                            | ) |   |   | 2,030 |   |
| Adjustments      to reconcile to net cash provided by (used in) operating      activities:  |   |                                          |                                              |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                                          | 4,940                                             |   |   |   | 3,968 |   |
| Gain      on sale of fixed assets                                                           |   |                                          | (101                                              | ) |   |   | (1,118 | ) |
| Equity-based      compensation expense                                                      |   |                                          | 868                                               |   |   |   | 901 |   |
| Deferred      income taxes                                                                  |   |                                          | (903                                              | ) |   |   | (2,021 | ) |
| Other                                                                                       |   |                                          | (4,215                                            | ) |   |   | (1,784 | ) |
| Changes      in operating assets and liabilities:                                           |   |                                          |                                              |   |   |   |   |   |
| Restricted      cash                                                                        |   |                                          | 439                                               |   |   |   | (294 | ) |
| Receivables      net, retainage and costs and estimated earnings in excess of      billings |   |                                          | (5,643                                            | ) |   |   | 2,228 |   |
| Inventories                                                                                 |   |                                          | 935                                               |   |   |   | 1 |   |
| Prepaid      expenses and other assets                                                      |   |                                          | 1,176                                             |   |   |   | (1,496 | ) |
| Accounts      payable and accrued expenses                                                  |   |                                          | (152                                              | ) |   |   | 4,281 |   |
| Net      cash (used in) provided by operating activities of continuing      operations      |   |                                          | (3,763                                            | )  |   |   | 6,696 |   |
| Net      cash provided by operating activities of discontinued      operations              |   |                                          | 1,571                                             |   |   |   | 1,487 |   |
| Net      cash (used in) provided by operating activities                               |   |                                          | (2,192                                            | ) |   |   | 8,183 |   |
|                                                                                        |   |                                          |                                              |   |   |   |   |   |
| Cash flows from      investing activities:                                                  |   |                                          |                                              |   |   |   |   |   |
| Capital      expenditures                                                                   |   |                                          | (2,656                                            | ) |   |   | (3,151 | ) |
| Proceeds      from sale of fixed assets                                                     |   |                                          | 241                                               |   |   |   | 644 |   |
|     Proceeds      from net foreign investment hedges                         |   |                                          | 7,873                                             |   |   |   | – |   |
| Purchase      of Bayou and Corrpro, net of cash acquired                                    |   |                                          | (209,714                                          | ) |   |   | – |   |
| Net      cash used in investing activities of continuing operations                         |   |                                          | (204,256                                          | ) |   |   | (2,507 | ) |
| Net      cash provided by (used in) investing activities of discontinued      operations    |   |                                          | 750                                               |   |   |   | (5 | ) |
| Net      cash used in investing activities                                                  |   |                                          | (203,506                                          | ) |   |   | (2,512 | ) |
|                                                                                        |   |                                          |                                              |   |   |   |   |   |
| Cash flows from      financing activities:                                                  |   |                                          |                                              |   |   |   |   |   |
| Proceeds      from issuance of common stock                                                 |   |                                          | 127,837                                           |   |   |   | – |   |
| Proceeds      from notes payable                                                            |   |                                          | 441                                               |   |   |   | – |   |
| Principal      payments on notes payable                                                    |   |                                          | (938                                              | ) |   |   | (732 | ) |
| Net      proceeds from line of credit                                                       |   |                                          | 7,500                                             |   |   |   | – |   |
| Proceeds      from long-term debt                                                           |   |                                          | 50,000                                            |   |   |   | – |   |
| Net      cash provided by (used in) financing activities                                    |   |                                          | 184,840                                           |   |   |   | (732 | ) |
| Effect      of exchange rate changes on cash                                                |   |                                          | (992                                              | ) |   |   | 4,883 |   |
| Net      increase (decrease) in cash and cash equivalents for the      period               |   |                                          | (21,850                                           | ) |   |   | 9,822 |   |
| Cash      and cash equivalents, beginning of period                                         |   |                                          | 99,321                                            |   |   |   | 78,961 |   |
| Cash      and cash equivalents, end of period                                               |   |                                          | $           77,471       |   |   |   | $           88,783 |   |
|                                                                                        |   |                                          |                                              |   |   |   |   |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

----

|                               |   | Combined      Financial           |                                                           |
|------------------------------------|--------|-----------------------------------|----------------------------------------------------------------|
|                               |   | Three      Months Ended March 31, |                                                           |
|                               |   |         2009            |                                                           |   |         2008 |   |
|                               |   |                              |                                                           |   |   |   |
| Revenue                            |   |                              | $              179,205 |   |   |   | $              196,111 |   |
| Net      income (loss)(1)      (2) |   |                              | (19,018                                                        | ) |   |   | 5,767 |   |

|   | (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 priceallocation. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes non-recurring      items related to $11.3 million of after-tax acquisition-related costs      incurred by Insituform, Bayou and Corrpro and $8.2 million of after-tax      expenses related to the 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      holdpack payments to Bayou shareholders                                        |   |   | 5,000                      |   |                                                                                   |   | – |   |
| Total      consideration transferred                                                          |   |   | $        141,419 |   |                                                                                   |   | $          91,549 |   |

|                                                                                               |   | Bayou  |                                                                        |   |                    Corrpro |   |
|----------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
| Cash                                                                                               |   |   | $                 68 |   |                                                                                   |   | $           14,186 |   |
| Receivables      and cost and estimated earnings in excess of billings                             |   |   | 13,748                                                                      |   |                                                                                   |   | 31,693 |   |
| Inventory                                                                                          |   |   | 3,394                                                                       |   |                                                                                   |   | 11,843 |   |
| Prepaid      expenses and other current assets                                                     |   |   | 3,191                                                                       |   |                                                                                   |   | 2,611 |   |
| Property,      plant and equipment                                                                 |   |   | 50,877                                                                      |   |                                                                                   |   | 10,507 |   |
| Customer      relationships                                                                        |   |   | 24,060                                                                      |   |                                                                                   |   | 27,100 |   |
| Trademarks                                                                                         |   |   | 5,320                                                                       |   |                                                                                   |   | 4,900 |   |
| Other      identifiable intangible assets                                                          |   |   | 2,241                                                                       |   |                                                                                   |   | 1,350 |   |
| Investments                                                                                        |   |   | 33,100                                                                      |   |                                                                                   |   | – |   |
| Other      assets                                                                                  |   |   | 1,090                                                                       |   |                                                                                   |   | 1,421 |   |
| Accounts      payable, accrued expenses and billings in excess of cost and estimated      earnings |   |   | (8,003                                                                      | )      |                                                                                   |   | (26,047 | ) |
| Other      long-term liabilities                                                                   |   |   | (14,277                                                                     | )      |                                                                                   |   | (17,525 | ) |
|    Total identifiable      net assets                                                    |   |   | $   114,809                                                  |   |                                                                                   |   | $      62,039 |   |

| Total      consideration transferred           |   |   | $         141,419            |   |   |   | $            91,549 |   |
|------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------|---------------------------------------------------|--------|
| Less:       total identifiable net assets |   |   |   114,809                         |   |   |   | 62,039                                            |   |
| Goodwill                                       |   |   | $           26,610 |   |   |   | $            29,510      |   |

----

----

|                                                                                                            |   | Three      Months Ended |       |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                                            |   | March      31,          |       |
|                                                                                                            |   | 2009                    |       |   | 2008 |   |
| Weighted      average number of common shares used for basic EPS                                                |   |                    | 32,987,397 |   |   |   | 27,470,623 |   |
| Effect      of dilutive stock options and restricted stock                                                      |   |                    | –    |   |   |   | 463,346 |   |
| Weighted      average number of common shares and dilutive potential common stock used      indilutive      EPS |   |                    | 32,987,397 |   |   |   | 27,933,969 |   |

|                           |   |                                                                                      |                       |   | As      of March 31, 2009       |   |                                                               | As      of December 31, 2008 |   |
|--------------------------------|--------|-------------------------------------------------------------------------------------------|----------------------------|--------|---------------------------------|--------|--------------------------------------------------------------------|------------------------------|--------|
|                           |   |   Weighted        Average    Useful      Lives (Years) |                       |   | Gross      Carrying Amount |   |                                                               | AccumulatedAmortization      |   |   | Net      CarryingAmount |   |   | Gross      CarryingAmount |   |   | AccumulatedAmortization |   |   | Net      CarryingAmount |   |
|                           |   |                                                                                      |                       |   |                            |   |                                                               |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| License      agreements        |   |                                                                                      | 11          |   |                            |   | $               3,894 |                         |   |   | $              (2,180 | ) |   |   | $               1,714 |   |   |   | $                3,894 |   |   |   | $               (2,139 | ) |   |   | $               1,755 |   |
| Contract      backlog          |   |                                                                                      | 1           |   |                            |   | 1,290                                                              |                         |   |   | (78 | ) |   |   | 1,212 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Leases                         |   |                                                                                      | 22          |   |                            |   | 1,271                                                              |                         |   |   | (6 | ) |   |   | 1,265 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Trademarks      and tradenames |   |                                                                                      | 22     |   |                            |   | 10,220                                                             |                         |   |   | (29 | ) |   |   | 10,191 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Non-compete      agreements    |   |                                                                                      | 3           |   |                            |   | 1,030                                                              |                         |   |   | (8 | ) |   |   | 1,022 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Customer      relationships    |   |                                                                                      | 16          |   |                            |   | 52,957                                                             |                         |   |   | (837 | ) |   |   | 52,120 |   |   |   | 1,797 |   |   |   | (633 | ) |   |   | 1,164 |   |
| Patents                        |   |                                                                                      | 17          |   |                            |   | 22,063                                                             |                         |   |   | (14,102 | ) |   |   | 7,961 |   |   |   | 21,431 |   |   |   | (13,997 | ) |   |   | 7,434 |   |
| Total                          |   |                                                                                      |                       |   |                            |   | $             92,725            |                         |   |   | $            (17,240 | ) |   |   | $             75,485 |   |   |   | $              27,122 |   |   |   | $             (16,769 | ) |   |   | $             10,353 |   |

| Estimated      amortization expense:          |   |   |                     |
|-----------------------------------------------|--------|--------|--------------------------|
| For nine months ending December      31, 2009 |   |   | $        4,349 |   |
| For year ending December 31,      2010        |   |   | 5,159                    |   |
| For year ending December 31,      2011        |   |   | 4,982                    |   |
| For year ending December 31,      2012        |   |   | 4,545                    |   |
| For year ending December 31,      2013        |   |   | 4,533                    |   |

----

----

|                                |   |  Stock             Awards |    |   |        Weighted       Average       Award Date       Fair Value |   |
|-------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009 |   |                                | 475,787 |   |                                                                                |   | $               14.25 |   |
| Awarded                             |   |                                | 383,615 |   |                                                                                |   | 12.84 |   |
| Shares      distributed             |   |                                | (21,608 | )      |                                                                                |   | 19.84 |   |
| Forfeited                           |   |                                | (9,743  | )      |                                                                                |   | 14.44 |   |
| Outstanding      at March 31, 2009  |   |                                | 828,051 |   |                                                                                |   | $              13.45 |   |

|                                |   |        Deferred       Stock       Units |    |   |        Weighted       Average       Award Date       Fair Value |   |
|-------------------------------------|--------|--------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009 |   |                                                   | 130,018 |   |                                                                                |   | $                 18.46 |   |
| Awarded                             |   |                                                   | – |   |                                                                                |   | – |   |
| Shares      distributed             |   |                                                   | – |   |                                                                                |   | – |   |
| Forfeited                           |   |                                                   | – |   |                                                                                |   | – |   |
| Outstanding      at March 31, 2009  |   |                                                   | 130,018 |   |                                                                                |   | $                18.46 |   |

|                                |   |        Shares |      |   |        Weighted       Average       Exercise       Price |   |
|-------------------------------------|--------|--------------------|-----------|--------|------------------------------------------------------------------------------|--------|
| Outstanding      at January 1, 2009 |   |               | 1,032,773 |   |                                                                         |   | $                 19.18 |   |
| Granted                             |   |               | 322,036   |   |                                                                         |   | 12.84 |   |
| Exercised                           |   |               | (750      | )      |                                                                         |   | 14.65 |   |
| Canceled/Expired                    |   |               | (14,740   | )      |                                                                         |   | 20.13 |   |
| Outstanding      at March 31, 2009  |   |               | 1,339,319 |   |                                                                         |   | 17.65 |   |
| Exercisable      at March 31, 2009  |   |               | 723,783   |   |                                                                         |   | 21.10 |   |

----

|                       |   | For      the Three Months Ended March 31, |   |
|----------------------------|--------|-------------------------------------------|--------|
|                       |   | 2009                                      |   |   | 2008 |   |
|                       |   |           Range       |   |   |  Weighted       Average |   |   |        Range |   |   |        Weighted       Average |   |
| Volatility                 |   |                                      | 50.1   | % |   |   | 50.1 | % |   |   | 37.3%      – 41.9 | % |   |   | 37.9 | % |
| Expected      term (years) |   |                                      | 7.0    |   |   |   | 7.0 |   |   |   | 5.0 |   |   |   | 5.0 |   |
| Dividend      yield        |   |                                      | 0.0    | % |   |   | 0.0 | % |   |   | 0.0 | % |   |   | 0.0 | % |
| Risk-free      rate        |   |                                      | 2.5    | % |   |   | 2.5 | % |   |   | 4.0 | % |   |   | 4.0 | % |

----

|                                                |   |  Documented Remediation       Costs |                                                                     |   |  Interest |   |                                                                         |  Total |   |
|-----------------------------------------------------|--------|----------------------------------------------------|--------------------------------------------------------------------------|--------|----------------|--------|------------------------------------------------------------------------------|-------------|--------|
|                                                |   | (in      thousands)                                |                                                                     |
| Claim      recorded June 30, 2005                   |   |                                               | $                5,872 |   |           |   | $                 275 |        |   |   | $              6,147 |   |
| Adjustment      based on subsequent developments(1) |   |                                               | 183                                                                      |   |           |   | –                                                                      |        |   |   | 183 |   |
| Interest      recorded(2)                           |   |                                               | –                                                                  |   |           |   | 1,738                                                                        |        |   |   | 1,738 |   |
| Claim      receivable balance, March 31, 2009       |   |                                               | $            6,055                         |   |           |   | $             2,013                            |        |   |   | $             8,068 |   |

|   | (1) | During      the second quarter of 2006, the claim was adjusted up by $0.5 million, as      a result of documented remediation costs. During the second quarter of      2007, the claim was adjusted down by $0.3 million, as a result of      subsequent developments in the matter. Interest was adjusted      accordingly. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | During the first quarter of 2009,      the Company recorded interest income of $0.1 million for post-judgment      interest. In the first quarter of 2008, the Company recorded $0.1 million      in pre-judgment interest. In total, the Company has recorded $1.6 million      in pre-judgment interest and $0.4 million in post-judgment      interest. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                |     |   |     |      |   | Weighted       |   |                  |     |   |
|---------------------|----------|--------|----------|-----------|--------|----------------|--------|-----------------------|----------|--------|
|                |     |   |     |      |   | Average        |   |                  |     |   |
|                |     |   |     |      |   | Remaining      |   |                  | Average  |   |
|                |     |   | Notional |      |   | Maturity       |   |                  | Exchange |   |
|                | Position |   | Amount   |      |   | in      Months |   |                  | Rate     |   |
| Euro                | Sell     |   | €  | 5,000,000 |   |           |   | 3.2    |     |   |   | 1.28    |   |
| Pound      Sterling | Sell     |   | £   | 5,000,000 |   |           |   | 3.2    |     |   |   | 1.53    |   |

----

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

|                                                                                           |   |         Three Months Ended March 31, |                                                                                     |
|------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                           |   |          2009                   |                                                                                     |   |         2008 |   |
| Beginning      balance, January 1                                                              |   |                                           | $                7,161                 |   |   |   | $                  (55 | ) |
| Expiration      of prior hedges included in cumulative        translation adjustment |   |                                           | (7,873                                                                                   | ) |   |   | – |   |
| Gain      included in other comprehensive income                                               |   |                                           | 941                                                                                      |   |   |   | 164 |   |
| Ending      balance, March 31                                                                  |   |                                           | $                   229 |   |   |   | $                 109 |   |

|                          |   |           2009 |                                                                                                           |   |         2008 |   |
|-------------------------------|--------|------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                          |   |                               |                                                                                                           |   |                   |   |
| Revenues                      |   |                               | $                      – |   |                   |   | $                5,608 |   |
| Gross      profit (loss)      |   |                               | 47                                                                                                             |   |                   |   | (34 | ) |
| Operating      expenses       |   |                               | 197                                                                                                            |   |                   |   | 36 |   |
| Operating      loss           |   |                               | (150                                                                                                           | )      |                   |   | (70 | ) |
| Loss      before tax benefits |   |                               | (150                                                                                                           | )      |                   |   | (132 | ) |
| Tax      benefits             |   |                               | (52                                                                                                            | )      |                   |   | (45 | ) |
| Net      loss                 |   |                               | (98                                                                                                            | )      |                   |   | (87 | ) |

|                                                               |   |        March 31,        2009 |                                                                                                             |   |            December 31,  2008 |   |
|--------------------------------------------------------------------|--------|---------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                                                               |   |                                        |                                                                                                             |   |                                                             |   |
| Receivables,      net                                              |   |                                        | $                       642 |   |                                                             |   | $                   2,235 |   |
| Retainage                                                          |   |                                        | 5,373                                                                                                            |   |                                                             |   | 5,917 |   |
| Claims      and costs and estimated earnings in excess of billings |   |                                        | 5,104                                                                                                            |   |                                                             |   | 5,104 |   |
| Prepaid      expenses and other current assets                     |   |                                        | 665                                                                                                              |   |                                                             |   | 448 |   |
| Property,      plant and equipment, less accumulated depreciation  |   |                                        | 2,506                                                                                                            |   |                                                             |   | 3,256 |   |
| Other      assets                                                  |   |                                        | 2,520                                                                                                            |   |                                                             |   | 2,587 |   |
| Total      assets                                                  |   |                                        | $                  16,810                            |   |                                                             |   | $                 19,547 |   |
|                                                               |   |                                        |                                                                                                             |   |                                                             |   |   |   |
| Current      liabilities                                           |   |                                        | $                    1,329                 |   |                                                             |   | $                   1,541 |   |
| Other      liabilities                                             |   |                                        | 887                                                                                                              |   |                                                             |   | 818 |   |
| Total      liabilities                                             |   |                                        | $                    2,216                 |   |                                                             |   | $                   2,359 |   |

----

|                                           |   |          Three Months Ended         March 31, |                                                                              |
|------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                           |   |          2009                                                |                                                                              |   |           2008 |   |
|                                           |   |                                                                        |                                                                              |   |   |   |
| Revenues:                                      |   |                                                                        |                                                                              |   |   |   |
|  North      American Sewer Rehabilitation |   |                                                                        | $           80,504                                       |   |   |   | $           81,053 |   |
|  European      Sewer Rehabilitation       |   |                                                                        | 18,207                                                                            |   |   |   | 25,610 |   |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                                                        | 5,746                                                                             |   |   |   | 1,539 |   |
|  Water      Rehabilitation                |   |                                                                        | 1,958                                                                             |   |   |   | 1,873 |   |
|  Energy      and Mining                   |   |                                                                        | 21,597                                                                            |   |   |   | 15,852 |   |
| Total      revenues                            |   |                                                                        | $         128,012                                                  |   |   |   | $         125,927 |   |
|                                           |   |                                                                        |                                                                              |   |   |   |   |   |
| Gross      profit (loss):                      |   |                                                                        |                                                                              |   |   |   |   |   |
|  North      American Sewer Rehabilitation |   |                                                                        | $           18,450                                       |   |   |   | $           16,390 |   |
|  European      Sewer Rehabilitation       |   |                                                                        | 4,498                                                                             |   |   |   | 4,720 |   |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                                                        | 2,054                                                                             |   |   |   | 481 |   |
|  Water      Rehabilitation                |   |                                                                        | (175                                                                              | ) |   |   | 61 |   |
|  Energy      and Mining                   |   |                                                                        | 5,846                                                                             |   |   |   | 5,234 |   |
| Total      gross profit                        |   |                                                                        | $           30,673                                       |   |   |   | $           26,886 |   |
|                                           |   |                                                                        |                                                                              |   |   |   |   |   |
| Operating      income (loss):                  |   |                                                                        |                                                                              |   |   |   |   |   |
|  North      American Sewer Rehabilitation |   |                                                                        | $             5,821                            |   |   |   | $             1,241 |   |
|  European      Sewer Rehabilitation       |   |                                                                        | (143                                                                              | ) |   |   | (935 | ) |
|  Asia-Pacific      Sewer Rehabilitation   |   |                                                                        | 1,262                                                                             |   |   |   | 165 |   |
|  Water      Rehabilitation                |   |                                                                        | (1,230                                                                            | ) |   |   | (601 | ) |
|  Energy      and Mining(1)      (2)       |   |                                                                        | (5,631                                                                            | ) |   |   | 3,385 |   |
| Total      operating income                    |   |                                                                        | $                  79 |   |   |   | $             3,255 |   |

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

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

----

|                               |   |         Three Months Ended        March 31, |                                                                        |
|------------------------------------|--------|-----------------------------------------------------------------|-----------------------------------------------------------------------------|
|                               |   |         2009                                          |                                                                        |   |         2008 |   |
|                               |   |                                                            |                                                                        |   |   |   |
| Revenues:                          |   |                                                            |                                                                        |   |   |   |
|   United      States     |   |                                                            | $          87,065                                       |   |   |   | $           78,634 |   |
|   Canada                 |   |                                                            | 11,718                                                                      |   |   |   | 12,204 |   |
|   Europe                 |   |                                                            | 18,224                                                                      |   |   |   | 26,542 |   |
|   Other      foreign     |   |                                                            | 11,005                                                                      |   |   |   | 8,547 |   |
| Total      revenues                |   |                                                            | $        128,012                                                  |   |   |   | $         125,927 |   |
|                               |   |                                                            |                                                                        |   |   |   |   |   |
| Gross      profit:                 |   |                                                            |                                                                        |   |   |   |   |   |
|   United      States     |   |                                                            | $          19,601                                       |   |   |   | $           15,983 |   |
|   Canada                 |   |                                                            | 3,213                                                                       |   |   |   | 3,922 |   |
|   Europe                 |   |                                                            | 4,371                                                                       |   |   |   | 4,784 |   |
|   Other      foreign     |   |                                                            | 3,488                                                                       |   |   |   | 2,197 |   |
| Total      gross profit            |   |                                                            | $          30,673                                       |   |   |   | $           26,886 |   |
|                               |   |                                                            |                                                                        |   |   |   |   |   |
| Operating      income (loss):      |   |                                                            |                                                                        |   |   |   |   |   |
|   United      States (1) |   |                                                            | $           (3,638                                 | ) |   |   | $             1,250 |   |
|   Canada                 |   |                                                            | 2,281                                                                       |   |   |   | 2,190 |   |
|   Europe                 |   |                                                            | (522                                                                        | ) |   |   | (1,571 | ) |
|   Other      foreign     |   |                                                            | 1,958                                                                       |   |   |   | 1,386 |   |
| Total      operating income        |   |                                                            | $                 79 |   |   |   | $             3,255 |   |

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

----

Discussion

----

|                                                |   |         Three Months Ended March 31, |                                                     |   |                   |   |                                                     |                              |   |
|-----------------------------------------------------|--------|------------------------------------------------|----------------------------------------------------------|--------|------------------------|--------|----------------------------------------------------------|-----------------------------------|--------|
|                                                |   |         2009                         |                                                     |   |         2008 |   |                                                     |           $ Change |   |   |          % Change |   |
|                                                |   |                                           |                                                     |   |                   |   |                                                     |                              |   |   |   |   |
|  Revenues                                      |   |                                           | $             128,012 |   |                   |   | $             125,927 |                              |   |   | $                2,085 |   |   |   | 1.7 | % |
|  Gross      profit                             |   |                                           | 30,673                                                   |   |                   |   | 26,886                                                   |                              |   |   | 3,787 |   |   |   | 14.1 |   |
|  Gross      margin                             |   |                                           | 24.0                                                     | %      |                   |   | 21.4                                                     | %                                 |   |   | 2.6 | % |   |   |   |   |
|  Operating      expenses                       |   |                                           | 30,594                                                   |   |                   |   | 23,631                                                   |                              |   |   | (6,963 | ) |   |   | (29.5 | ) |
|  Operating      income                         |   |                                           | 79                                                       |   |                   |   | 3,255                                                    |                              |   |   | (3,176 | ) |   |   | (97.8 | ) |
|  Operating      margin                         |   |                                           | 0.1                                                      | %      |                   |   | 2.6                                                      | %                                 |   |   | (2.5 | )% |   |   |   |   |
|  Income      (loss) from continuing operations |   |                                           | (1,107                                                   | )      |                   |   | 2,030                                                    |                              |   |   | (3,137 | ) |   |   | (154.5 | ) |

----

|                          |   |           Three Months Ended March 31, |                                                           |   |                         |   |                                                                |                                   |   |
|-------------------------------|--------|-------------------------------------------------------|----------------------------------------------------------------|--------|------------------------------|--------|---------------------------------------------------------------------|----------------------------------------|--------|
|                          |   |         2009                                |                                                           |   |          2008 |   |                                                                |           $ Change |   |   |           % Change |   |
|                          |   |                                                  |                                                           |   |                         |   |                                                                |                                   |   |   |   |   |
|  Revenues                |   |                                                  | $               80,504 |   |                         |   | $               81,053 |                                   |   |   | $                   (549 | ) |   |   | (0.7 | )% |
|  Gross      profit       |   |                                                  | 18,450                                                         |   |                         |   | 16,390                                                              |                                   |   |   | 2,060 |   |   |   | 12.6 |   |
|  Gross      margin       |   |                                                  | 22.9                                                           | %      |                         |   | 20.2                                                                | %                                      |   |   | 2.7 | % |   |   |   |   |
|  Operating      expenses |   |                                                  | 12,629                                                         |   |                         |   | 15,149                                                              |                                   |   |   | (2,520 | ) |   |   | (16.6 | ) |
|  Operating      income   |   |                                                  | 5,821                                                          |   |                         |   | 1,241                                                               |                                   |   |   | 4,580 |   |   |   | 369.1 |   |
|  Operating      margin   |   |                                                  | 7.2                                                            | %      |                         |   | 1.5                                                                 | %                                      |   |   | 5.7 | % |   |   |   |   |

----

|                               |   |             Three Months Ended March 31, |                                                                |   |                   |   |                                                                |                                   |   |
|------------------------------------|--------|------------------------------------------------------------------------|---------------------------------------------------------------------|--------|------------------------|--------|---------------------------------------------------------------------|----------------------------------------|--------|
|                               |   |         2009                                                 |                                                                |   |         2008 |   |                                                                |           $ Change |   |   |           % Change |   |
|                               |   |                                                                   |                                                                |   |                   |   |                                                                |                                   |   |   |   |   |
|  Revenues                     |   |                                                                   | $               18,207 |   |                   |   | $               25,610 |                                   |   |   | $                  (7,403 | ) |   |   | (28.9 | )% |
|  Gross      profit            |   |                                                                   | 4,498                                                               |   |                   |   | 4,720                                                               |                                   |   |   | (222 | ) |   |   | (4.7 | ) |
|  Gross      margin            |   |                                                                   | 24.7                                                                | %      |                   |   | 18.4                                                                | %                                      |   |   | 6.3 | % |   |   |   |   |
|  Operating      expenses      |   |                                                                   | 4,641                                                               |   |                   |   | 5,655                                                               |                                   |   |   | (1,014 | ) |   |   | (17.9 | ) |
|  Operating      income (loss) |   |                                                                   | (143                                                                | )      |                   |   | (935                                                                | )                                      |   |   | 792 |   |   |   | (84.7 | ) |
|  Operating      margin        |   |                                                                   | (0.8                                                                | )%     |                   |   | (3.7                                                                | )%                                     |   |   | 2.9 | % |   |   |   |   |

----

|                          |   |           Three Months Ended March 31, |                                                                |   |                   |   |                                                                     |                                   |   |
|-------------------------------|--------|------------------------------------------------------------|---------------------------------------------------------------------|--------|------------------------|--------|--------------------------------------------------------------------------|----------------------------------------|--------|
|                          |   |         2009                                     |                                                                |   |         2008 |   |                                                                     |           $ Change |   |   |           % Change |   |
|                          |   |                                                       |                                                                |   |                   |   |                                                                     |                                   |   |   |   |   |
|  Revenues                |   |                                                       | $                5,746 |   |                   |   | $                1,539 |                                   |   |   | $                    4,207 |   |   |   | 273.4 | % |
|  Gross      profit       |   |                                                       | 2,054                                                               |   |                   |   | 481                                                                      |                                   |   |   | 1,573 |   |   |   | 327.0 |   |
|  Gross      margin       |   |                                                       | 35.7                                                                | %      |                   |   | 31.3                                                                     | %                                      |   |   | 4.4 | % |   |   |   |   |
|  Operating      expenses |   |                                                       | 792                                                                 |   |                   |   | 316                                                                      |                                   |   |   | 476 |   |   |   | 150.6 |   |
|  Operating      income   |   |                                                       | 1,262                                                               |   |                   |   | 165                                                                      |                                   |   |   | 1,097 |   |   |   | 664.8 |   |
|  Operating      margin   |   |                                                       | 22.0                                                                | %      |                   |   | 10.7                                                                     | %                                      |   |   | 11.3 | % |   |   |   |   |

----

|                           |   |           Three Months Ended March 31, |                                                                |   |                   |   |                                                                |                                   |   |
|--------------------------------|--------|------------------------------------------------------------|---------------------------------------------------------------------|--------|------------------------|--------|---------------------------------------------------------------------|----------------------------------------|--------|
|                           |   |         2009                                     |                                                                |   |         2008 |   |                                                                |           $ Change |   |   |           % Change |   |
|                           |   |                                                       |                                                                |   |                   |   |                                                                |                                   |   |   |   |   |
|  Revenues                 |   |                                                       | $                1,958 |   |                   |   | $                1,873 |                                   |   |   | $                        85 |   |   |   | 4.5 | % |
|  Gross      profit (loss) |   |                                                       | (175                                                                | )      |                   |   | 61                                                                  |                                   |   |   | (236 | ) |   |   | (386.9 | ) |
|  Gross      margin        |   |                                                       | (8.9                                                                | )%     |                   |   | 3.3                                                                 | %                                      |   |   | (12.2 | )% |   |   |   |   |
|  Operating      expenses  |   |                                                       | 1,055                                                               |   |                   |   | 662                                                                 |                                   |   |   | 393 |   |   |   | 59.4 |   |
|  Operating      loss      |   |                                                       | (1,230                                                              | )      |                   |   | (601                                                                | )                                      |   |   | (629 | ) |   |   | 104.7 |   |
|  Operating      margin    |   |                                                       | (62.8                                                               | )%     |                   |   | (32.1                                                               | )%                                     |   |   | (30.7 | )% |   |   |   |   |

|                                 |   |           Three Months Ended March 31, |                                                          |   |                   |   |                                                                |                                   |   |
|--------------------------------------|--------|------------------------------------------------------------|---------------------------------------------------------------|--------|------------------------|--------|---------------------------------------------------------------------|----------------------------------------|--------|
|                                 |   |         2009                                     |                                                          |   |         2008 |   |                                                                |           $ Change |   |   |           % Change |   |
|                                 |   |                                                       |                                                          |   |                   |   |                                                                |                                   |   |   |   |   |
|  Revenues                       |   |                                                       | $              21,597 |   |                   |   | $               15,852 |                                   |   |   | $                    5,745 |   |   |   | 36.2 | % |
|  Gross      profit              |   |                                                       | 5,846                                                         |   |                   |   | 5,234                                                               |                                   |   |   | 612 |   |   |   | 11.7 |   |
|  Gross      margin              |   |                                                       | 27.1                                                          | %      |                   |   | 33.0                                                                | %                                      |   |   | (5.9 | )% |   |   |   |   |
|  Acquisition-related      costs |   |                                                       | 8,219                                                         |   |                   |   | –                                                             |                                   |   |   | 8,219 |   |   |   | 100.0 |   |
|  Operating      expenses        |   |                                                       | 3,256                                                         |   |                   |   | 1,849                                                               |                                   |   |   | 1,407 |   |   |   | (76.1 | ) |
|  Operating      income (loss)   |   |                                                       | (5,631                                                        | )      |                   |   | 3,385                                                               |                                   |   |   | (9,016 | ) |   |   | (266.4 | ) |
|  Operating      margin          |   |                                                       | (26.1                                                         | )%     |                   |   | 21.4                                                                | %                                      |   |   | (47.5 | )% |   |   |   |   |

----

----

----

| Backlog                                  |   |          March 31,         2009 |                                                         |   |        December 31,        2008 |   |                                                         |        September 30,        2008 |   |   |          June 30,         2008 |   |   |         March 31,       2008 |                                                         |
|------------------------------------------|--------|---------------------------------------------------------------|--------------------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------------------|-------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------|--------------------------------------------------------------|
| (in      millions)                       |   |
| North      American Sewer Rehabilitation |   |                                                          | $              160.4 |   |                                           |   | $              150.8 |                                            |   |   | $              178.5 |   |   |                                        | $              185.4 |   |   |   | $              174.2 |   |
| European      Sewer Rehabilitation       |   |                                                          | 26.1                                                         |   |                                           |   | 25.2                                                         |                                            |   |   | 30.7                                                         |   |   |                                        | 34.9                                                         |   |   |   | 39.0 |   |
| Asia-Pacific      Sewer Rehabilitation   |   |                                                          | 40.1                                                         |   |                                           |   | 46.2                                                         |                                            |   |   | 53.6                                                         |   |   |                                        | 33.2                                                         |   |   |   | 34.4 |   |
| Water      Rehabilitation                |   |                                                          | 8.9                                                          |   |                                           |   | 8.2                                                          |                                            |   |   | 6.7                                                          |   |   |                                        | 11.6                                                         |   |   |   | 5.8 |   |
| Energy      and Mining (1)               |   |                                                          | 153.2                                                        |   |                                           |   | 18.7                                                         |                                            |   |   | 23.4                                                         |   |   |                                        | 24.7                                                         |   |   |   | 32.2 |   |
| Total                                    |   |                                                          | $              388.7 |   |                                           |   | $              249.1 |                                            |   |   | $              292.9 |   |   |                                        | $              289.8 |   |   |   | $              285.6 |   |

|   | (1)      Contract backlog for our Energy and Mining segment at March 31, 2009      includes backlog of our newly acquired Bayou and Corrpro businesses of      $76.7 million and $62.2 million,respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   |         March 31,        2009 |                                               |   |        December 31,        2008 |   |
|--------------------------------|--------|---------------------------------------------------|----------------------------------------------------|--------|------------------------------------------------|--------|
|                           |   | (in      thousands)                               |                                               |
| Cash      and cash equivalents |   |                                              | $             77,471 |   |                                           |   | $             99,321 |   |
| Restricted      cash           |   |                                              | 1,378                                              |   |                                           |   | 1,829 |   |

----

----

| Payments      Due by Period             |   |
|-----------------------------------------|--------|
| Cash      Obligations(1)(2)(3)(4)       |   |             Total |   |   |             2009 |   |   |             2010 |   |   |            2011 |   |   |            2012 |   |   |            2013 |   |   |           Thereafter |   |
| Long-term      debt                     |   |   | 115,000 |   |   |   | 7,500 |   |   |   | 10,000 |   |   |   | 10,000 |   |   |   | 22,500 |   |   |   | 65,000 |   |   |   | - |   |
| Line      of credit facility            |   |   | 7,500 |   |   |   | 7,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      on long-term debt         |   |   | 20,973 |   |   |   | 4,903 |   |   |   | 4,758 |   |   |   | 4,613 |   |   |   | 4,574 |   |   |   | 2,125 |   |   |   | - |   |
| Operating      leases                   |   |   | 39,912 |   |   |   | 11,732 |   |   |   | 10,948 |   |   |   | 6,905 |   |   |   | 4,104 |   |   |   | 2,844 |   |   |   | 3,379 |   |
| Total      contractual cash obligations |   |   | 183,385 |   |   |   | 31,635 |   |   |   | 25,706 |   |   |   | 21,518 |   |   |   | 31,178 |   |   |   | 69,969 |   |   |   | 3,379 |   |

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

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

| (3) | As      of March 31, 2009, we had borrowed the entire amount of the $50.0 million      term loan and $7.5 million of our revolving line of credit under our      $115.0 million credit facility in connection with our acquisition of      Corrpro Companies, Inc.on March 31, 2009. We also had $18.2 million for      non-interest bearing letters of credit outstanding as of March 31, 2009,      $14.5 million of which was collateral for insurance and $3.7 million of      which was collateral for workperformance. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | 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                                       |   |
| Energy      and Mining                   |   |   | 57.1                                       |   |
|    Total      Goodwill         |   |   | $           179.1 |   |

Disclosures

----

Item 4.  Controls and Procedures

----

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

Securities

Item 4.  Submission of Matters to a Vote of SecurityHolders

|   | 1. | The      following six directors were elected, each to serve a one-year term or      until his or her successor has been elected and qualified. The vote was as      follows: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                       |   |      For |       |   |            Against |   |      |             Abstain |   |   |    BrokerNon-Vote |   |
|----------------------------|--------|-------------------------|------------|--------|---------------------------------------------|--------|-----------|---------------------------------------------------|--------|--------|-----------------------------|--------|
| J.      Joseph Burgess     |   |                    | 30,756,722 |   |                                        |   | 941,057   |                                              |   |   | 43,118                      |   |   |   | 2,231 |   |
| Stephen      P. Cortinovis |   |                    | 28,266,956 |   |                                        |   | 3,423,259 |                                              |   |   | 50,682                      |   |   |   | 2,231 |   |
| Stephanie      A. Cuskley  |   |                    | 28,471,945 |   |                                        |   | 3,226,822 |                                              |   |   | 42,130                      |   |   |   | 2,231 |   |
| John      P. Dubinsky      |   |                    | 27,487,889 |   |                                        |   | 4,203,872 |                                              |   |   | 49,134                      |   |   |   | 2,233 |   |
| Juanita      H. Hinshaw    |   |                    | 28,087,957 |   |                                        |   | 3,611,188 |                                              |   |   | 41,754                      |   |   |   | 2,229 |   |
| Alfred      L. Woods       |   |                    | 28,254,365 |   |                                        |   | 3,447,465 |                                              |   |   | 39,070                      |   |   |   | 2,228 |   |

| 2. | The      Insituform Technologies, Inc. 2009 Employee Equity Incentive Plan was      approved. The vote was as follows: |
|----|------------------------------------------------------------------------------------------------------------------------|

| For        | Against   | Abstain | Broker Non-Vote |
|------------|-----------|---------|-----------------|
| 20,828,532 | 3,632,336 | 30,211  | 7,252,049       |

| 3. | The      appointment of PricewaterhouseCoopers LLP as independent auditors for the      fiscal year ending December 31, 2009      was ratified.  The vote was as  follows: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For        | Against | Abstain | Broker Non-Vote |
|------------|---------|---------|-----------------|
| 31,511,730 | 145,657 | 83,511  | 2,230           |

Item 6.  Exhibits 

----

SIGNATURE

|                         | INSITUFORM      TECHNOLOGIES, INC.                                                       |
|------------------------------|------------------------------------------------------------------------------------------|
|                         |                                                                                |
| Date:       May 7, 2009 | /s/ David A. Martin                                                                      |
|                         | Senior      Vice President and Chief Financial Officer(Principal      Financial Officer) |

----

INDEX

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

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

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

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