Insituform Acquires Additional $21 Million in Sewer Rehabilitation Contracts in India
Total backlog of approximately US$56 million positions Insituform for growth in India’s rapidly expanding infrastructure market
CHESTERFIELD, MO, October 6, 2008 – Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) has won two new sewer rehabilitation contracts in Delhi, India, totaling $21.1 million.
The work will be performed by Insituform Pipeline Rehabilitation Private Limited, an Indian company and joint venture between Insituform Technologies and Subhash Projects & Marketing Limited (SPML) (Bombay Stock Exchange: SUBH). SPML is one of India's largest water, waste and power infrastructure companies. The joint venture company combines the technical expertise and globally acclaimed cured-in-place pipe (CIPP) technologies of Insituform with the execution and marketing capabilities of SPML.
As part of the plan to spend in excess of $1 billion to rehabilitate a sewer system that serves a population of approximately 14 million people, the Delhi Jal Board (DJB) issued letters of intent for the contracts to Insituform's Indian joint venture on September 12, 2008. Insituform is currently working with DJB on two existing projects valued at $35.1 million that previously were awarded to Insituform.
“Insituform has and will continue to make significant operational investments in India to safely and profitably service both our $56 million in backlog as well as the many new projects to be released by the DJB and other major Indian municipalities,” said Daniel E. Cowan, Vice President, Strategic Business Initiatives for Insituform. “Insituform is also actively working to expand its product offerings in India so that we can participate in a larger portion of each program.”
Combined, the new contracts involve rehabilitating 13,435 meters (8.35 miles) of medium- and large-diameter sewer lines with Insituform’s cured-in-place pipe (CIPP), along with other trenchless and non-trenchless work. CIPP is a jointless pipe-within-a-pipe used to rehabilitate sewers with virtually no digging. The work will begin in 2009 and is scheduled to be completed within 24 months.
"The recent addition of substantial backlog in New Delhi is part of Insituform’s long-term growth strategy for the Asia-Pacific region,” said J. Joseph Burgess, Insituform’s President and CEO. “Insituform is committed to building a vertically integrated Asian operational platform ready to service the nearly $2 billion of funded trenchless projects over the next five years in India and meet the growing trenchless needs of other Asia-Pacific countries.”
Insituform has completed its first large-diameter sewer rehabilitation project in India for the New Delhi Municipal Council and has begun work on two other DJB projects scheduled for completion in early 2010.
Insituform Technologies, Inc. is a leading worldwide provider of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems without digging or disruption. More information about the Company can be found on its Internet site at www.insituform.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. The company makes forward-looking statements in this news release that represent the company's beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the company and on management's beliefs, assumptions, estimates, and projections and are not guarantees of future events or results. When used in this document, the words "anticipate," " estimate," "believe," "plan," "intend," "may," "will," and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the "Risk Factors" section of the company's Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the Securities and Exchange Commission on March 10, 2008, and in our subsequent Quarterly Reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. In addition, our actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, we do not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the company from time to time in its periodic filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by the company in this news release are qualified by these cautionary statements. Insituform® and the Insituform® logo are the registered trademarks of Insituform Technologies, Inc. and its affiliates.
CONTACT: Insituform Technologies, Inc. David A. Martin, 636-530-8000 Vice President and Chief Financial Officer