EMCOR GROUP-LED JOINT VENTURE, EJB FACILITIES SERVICES, AWARDED CONTRACT BY UNITED STATES NAVY
–Base Operations Support to be Provided to Navy Facilities in Puget Sound Area of Washington State–
NORWALK, Connecticut – February 8, 2006 – EMCOR Group, Inc. (NYSE: EME) announced today that the United States Navy has awarded to EJB Facilities Services, Inc., a joint venture for which EMCOR serves as managing partner, an eight-year contract to provide base operations support to facilities in the Western Puget Sound area of Washington State. The bases, part of Naval Region Northwest, encompass strategically important fleet support activities, including the home of the U.S. Pacific Fleet’s nuclear submarines.
EJB is a joint venture consisting of EMCOR Facilities Services, J&J Maintenance and BMAR & Associates. Total project value is in excess of $400 million, and EMCOR’s share amounts to forty percent.
Under terms of the contract, over 500 professional, technical and crafts personnel of the joint venture and its subcontractors will provide a variety of support services for Naval Base-Kitsap and various other activities located in outlying areas. Services covered in the contract, which was awarded by the Navy Region Northwest include: management and administration, visual information services, security, facilities support, utilities, equipment maintenance, and environmental services.
The centerpiece of the contract is the Navy’s submarine base in Bangor, WA, located on the Hood Canal, which opens onto Puget Sound and into the Pacific Ocean. In addition to being homeport for the U.S. Pacific submarine fleet, the area has a number of other significant bases that will be served by the joint venture, including: the Naval Undersea Warfare Center in Keyport, WA; Puget Sound Naval Shipyard, the Fleet Industrial Supply Center, and Naval Hospital in Bremerton, WA; and the Naval Magazine on Indian Island.
“We’re extremely proud to be part of such an important and significant project for our country,” said Frank MacInnis, Chairman and CEO of EMCOR. “Along with our joint venture partners, we bring a wealth of experience and expertise in building and maintaining the infrastructure and services for these facilities, and in managing the related environmental, health and safety processes. We look forward to working with the Navy in support of this important initiative.”
“We are moving forward with creating more efficiencies in how we do business in supporting the fleet here in the Pacific Northwest,” said Rear Admiral William French, Commander, Navy Region Northwest. “We are counting on EJB’s expertise to help us in this endeavor.”
EMCOR Group, Inc. is a Fortune 500® worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services.
J&J Maintenance Inc. (Austin, TX) is a family-owned defense contractor specializing in base operations and maintenance and repair, military housing maintenance, and medical facility operations, maintenance, and repair. www.jandjmaintenance.com
BMAR & Associates, LLC (Hopkinsville, KY), part of The LINC Group, specializes in the federal government and healthcare sectors with services in construction management, base operations and logistics, and medical facility operations and maintenance. www.bmar.net
This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management’s perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, project mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity, mix of business, and risks associated with foreign operations. Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2004 Form 10-K, its Form 10-Q for the third quarter ended September 30, 2005, and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.
EMCOR GROUP, INC.
CONTACT:R. Kevin Matz
Senior Vice President
Shared Services
(203) 849-7938
Financial Dynamics
Investors:
Eric Boyriven – 212-850-5600
Linden Alschuler & Kaplan, Inc.
Media:
Josh Epstein - (212) 575-4545
