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Insituform Technologies, Inc. Announces North America Region Management Reorganization and $4.2 Million Reduction in Administrative and Overhead Costs

CHESTERFIELD , MO, NOVEMBER 18, 2008 – Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) today announced a reorganization of its North America Region business unit management that will eliminate layers of management to reduce administrative and overhead costs.  The Company expects to realize approximately $4.2 million in annual cost savings from these efforts.   

The reorganization plan includes the elimination of 35 management and support staff positions.  Approximately half of the positions are located at the Company’s headquarters in Chesterfield, Missouri, with the remainder located throughout North America.  All employees whose jobs are to be eliminated have been notified and will be provided transitional assistance. 

The Company will record pre-tax charges of approximately $1.6 million in the fourth quarter of 2008 related to the reorganization and position eliminations.

“More than a year ago we set aggressive targets to reduce operating costs and administrative overhead.  These improvements in our North America management structure are part of that plan and not a response to current economic conditions,” said Joe Burgess, President and CEO.  “During the past three quarters we have seen growth in both revenue and income, which we expect will continue.  We will couple that growth with continuing overhead cost rationalization.”

“The employees who are leaving us are good people who have served Insituform well.  We are grateful to them and sorry to see them go, and we will do our best to help them resume their careers elsewhere,” Burgess said.

Under the new NAR organizational structure implemented this week, managers responsible for each of the four NAR operating regions will report directly to Burgess. The NAR regional managers will have full responsibility for operations, project management, business development and estimating in their areas, and will take over some business and support functions previously managed from the corporate headquarters.  The overall result of the reorganization will be a leaner and flatter management structure, with fewer layers of management. 

“We have made good progress over the past year in aligning our resources in NAR to the needs of the market, and our crews are now working at capacity and achieving record productivity levels.  As we add crews and new business in the months ahead, we will continue to focus on maintaining the leanest and most efficient management structure possible,” Burgess said.      

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 Insituform is available on its Internet site at www.insituform.com.

Forward-Looking Statements
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 or 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 include, among others, our belief as to the cost savings that we expect to realize and the pre-tax charges we expect to record as a result of the reorganization and position eliminations.  In light of these risks, uncertainties and assumptions, the forward-looking events 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 statement, 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 ® , the Insituform® logo and Clean water for the world® are the registered trademarks of Insituform Technologies, Inc. and its affiliates.


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