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EMCOR GROUP, INC. REPORTS RECORD THIRD QUARTER RESULTS

– Revenues and Operating Income Rise 21% and 58% over 2006  –

– Contract Backlog Reaches Record $4.48 Billion –

– 2007 Full Year Revenues and Earnings Guidance Raised –

NORWALK, CONNECTICUT, October 25, 2007 – EMCOR Group, Inc. (NYSE: EME) today reported results for the third quarter and nine months ended September 30, 2007. The Company’s financial results for the prior year periods have been adjusted to reflect its 2-for-1 stock split, effective July 9, 2007.

Income from continuing operations for the third quarter of 2007 rose 68.3% to $37.1 million, or $0.55 per diluted share, compared to $22.0 million, or $0.33 per diluted share, in the third quarter of 2006. 

Including income from discontinued operations of $1.3 million, net income for the third quarter of 2007 was $38.3 million, or $0.57 per diluted share.  Including income from discontinued operations of $0.5 million, net income for the third quarter of 2006 was $22.6 million, or $0.34 per diluted share.  The Company’s results for the third quarter of 2006 also include restructuring expenses of $0.6 million, as previously announced.

In the third quarter of 2007, the Company reported revenues of $1.50 billion, an increase of 21.1% over revenues of $1.24 billion in the year ago period.  After excluding revenues from 2007 acquisitions, organic revenue growth in the 2007 third quarter was 13.8%.

Operating income was $54.9 million in the third quarter of 2007, an increase of 57.8% over operating income of $34.8 million in the same period last year.  As a percentage of revenues, operating income improved to 3.7% in the 2007 third quarter from 2.8% a year ago.  Selling, general and administrative (SG&A) expenses were $114.0 million, or 7.6% of revenues, in the 2007 third quarter, versus $108.6 million, or 8.8% of revenues in the third quarter of 2006, primarily reflecting the Company’s previous restructuring initiatives and the success of its efforts to control costs despite strong revenue growth.  During the 2007 third quarter, the Company’s tax rate declined to 34% from 37.8% in the year ago period as a result of a reduction in United Kingdom income before income taxes. 

Contract backlog at September 30, 2007 was a record $4.48 billion, compared with backlog of $3.40 billion at September 30, 2006, an increase of 31.8%.  On a sequential basis, the Company’s backlog rose $223 million, or 5.3%, from a previous record of $4.26 billion at June 30, 2007. 

During the quarter, the Company completed its acquisition of Ohmstede, Ltd. (“Ohmstede”), the leading provider of aftermarket maintenance and repair services, replacement parts and fabrication services for highly engineered shell and tube heat exchangers for the refinery and petrochemical industries, for approximately $455 million in cash, as previously announced.  Ohmstede contributed $19.0 million in revenues to the Company’s results during the 2007 third quarter, and was slightly accretive to diluted earnings per share for the period.  Ohmstede also contributed $125.9 million to the Company’s total backlog as of September 30, 2007.

For the first nine months of 2007, income from continuing operations rose 61.9% to $74.0 million, or $1.11 per diluted share, from $45.7 million, or $0.70 per diluted share, in the first nine months of 2006.  Including income from discontinued operations of $2.5 million, net income for the 2007 nine-month period was $76.5 million, or $1.15 per diluted share.  Including income from discontinued operations of $0.7 million and restructuring expenses of $0.6 million, net income for the 2006 nine-month period was $46.4 million, or $0.71 per diluted share.

Revenues for the 2007 nine-month period rose 17.0% to $4.16 billion, from $3.55 billion in the year ago period.  After excluding revenues from 2007 acquisitions, organic revenue growth was 12.2% for the first nine months of 2007.

For the 2007 nine-month period, operating income rose 63.3% to $113.7 million, or 2.7% of revenues, from $69.6 million, or 2.0% of revenues from the year ago period.  SG&A expenses for the first nine months of 2007 totaled $348.7 million, or 8.4% of revenues, compared with $315.2 million, or 8.9% of revenues, in the first nine months of 2006.

Frank T. MacInnis, Chairman and CEO of EMCOR Group, commented, “The 2007 third quarter marked another strong period of execution and performance by EMCOR Group, and our results reflect our outstanding competitive position and the robust markets we have experienced throughout the year.  Our performance was driven by strong growth across all our segments in North America.  This is particularly true in the U.S. market, as our U.S. Mechanical, Electrical and Facilities Services divisions continued to post strong growth in revenues and profitability.  We also continue to grow our business from a position of financial strength. We generated excellent cash flows during the third quarter and our balance sheet remains strong notwithstanding the completion of the Ohmstede acquisition.  The initial stages of the integration of Ohmstede have gone well, and we have already identified opportunities to extend their business into new markets.”

Mr. MacInnis concluded, “Our major markets continue to reflect strong demand for our broad range of services.  In addition, EMCOR’s recent trend towards longer-duration, higher-margin projects has continued, as illustrated by our high level of activity in the healthcare, hospitality and gaming sectors.  In short, we remain well positioned to take advantage of the opportunities before us.  Based on the trajectory and composition of our backlog, we are again increasing our 2007 performance estimates to revenues of $5.8 billion and diluted earnings per share from continuing operations of $1.75 – $1.80.”

EMCOR Group, Inc. is a Fortune 500® worldwide leader in mechanical and electrical construction services, energy infrastructure and facilities services. 

EMCOR Group’s third quarter conference call will be available live via Internet broadcast today, Thursday, October 25, at 10:30 AM Eastern Daylight Time.  You can access the live call through the Home Page of the Company’s Web site at www.emcorgroup.com.

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 and its 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, backlog 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 and mix of business.  Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2006 Form 10-K, its Form 10-Q for the third quarter ended September 30, 2007, 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.

- FINANCIAL TABLES FOLLOW -

EMCOR GROUP, INC.

FINANCIAL HIGHLIGHTS

(In thousands, except share and per share information)

(Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                  For the Three Months Ended             For the Nine Months Ended

                                                            September 30,                                September 30,

                                                         2007                  2006                         2007                2006

Revenues                                 $1,500,798        $1,239,400              $4,159,519         $3,554,335

Cost of sales                              1,331,887          1,095,412                3,696,996           3,168,887

Gross profit                                     168,911             143,988                   462,523              385,448

Selling, general and

   administrative expenses            113,996            108,576                  348,711               315,219

Restructuring expenses                            --                    604                            93                       604

Operating income                             54,915               34,808                  113,719                69,625

Interest income, net                            2,167                 1,463                        7,656                  2,192

Minority interest                                     (932)                  (828)                     (2,046)                   (337)

Income from continuing

   operations before income taxes       56,150               35,443                   119,329               71,480

Income tax provision                              19,067               13,407                     45,370                25,790

Income from continuing

   operations                                           37,083               22,036                     73,959                45,690

Income from discontinued

   operations, net of income taxes         1,253                    517                       2,519         _          737

Net income                                       $     38,336         $    22,553              $     76,478         $     46,427

Basic earnings per share -

   continuing operations                 $         0.57         $        0.35             $         1.15          $         0.73

Basic earnings per share -          

   discontinued operations                        0.02                   0.01                         0.04                     0.01

                                                 $                   0.59         $        0.36              $         1.19          $         0.74

Diluted earnings per share -

   continuing operations                 $         0.55         $        0.33             $         1.11          $         0.70

Diluted earnings per share -        

   discontinued operations                        0.02                   0.01                         0.04                     0.01

                                                  $                   0.57         $        0.34             $         1.15          $         0.71

Weighted average shares of                         

Common stock outstanding:

Basic                                              64,591,883        63,403,764               64,208,289        63,059,282

Diluted                                           66,922,011        65,783,018               66,622,958        65,252,087

EMCOR GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)