SNC-Lavalin Nuclear (USA) awarded major contract for steam generator
replacement in USA

MONTREAL , Jan. 8, 2010 /CNW Telbec/ - SNC-Lavalin is pleased to announce that SNC-Lavalin Nuclear (USA) has signed a contract with Xcel Energy to replace the Unit #2 steam generators at the Prairie Island Nuclear Generating Plant (PINGP), located at Welch, Minnesota.

Previously SNC-Lavalin Nuclear had carried out the steam generator removal study for PINGP which included laser measurements, spatial analysis and 3-D modeling to provide the optimum steam generator removal methodology, complete with advance visual computer-generated graphics simulation.

The original Unit #2 steam generators, which have been in service since 1974, are to be removed from the reactor building and replaced with new larger capacity ones, pending government approvals of proposed license extension and generation capacity expansion and related issues. In connection with the replacement of the steam generators, SNC-Lavalin Nuclear (USA) shall provide the services for design, engineering, manufacture, installation and construction of the necessary equipment and goods, including insulation, structural and piping modifications, instrumentation and controls and electrical systems.

"We are very pleased to be working again with the staff of Xcel Energy and PINGP, and to have this opportunity to continue building on our strong relationship, as well as leveraging SNC-Lavalin Nuclear's expertise in steam generator replacements and in executing projects with challenging logistics," said Patrick Lamarre , President, SNC-Lavalin Nuclear (USA) and Executive Vice-President SNC-Lavalin Group Inc. "This project will also bring further opportunities in the US nuclear market for SNC-Lavalin Nuclear to build on its 43 years of nuclear experience."

Engineering and procurement activities have begun, as have preparations for the work to be carried out in the next unit outage in 2011. The actual steam generator replacements will take place during an outage period in late 2013.

"This contract is indicative of SNC-Lavalin's growing market share in the nuclear power sector and its ability to work with various nuclear technologies," said Ron Moleschi, Vice-President of SNC-Lavalin's Nuclear Division leading the project. "It also further demonstrates our proven capabilities in executing projects in the US."

SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com

For further information: Media: Leslie Quinton, Vice-President, Global Corporate Communications, SNC-Lavalin Group Inc., [phone], ext. 7354, [email protected]; Investors: Denis Jasmin, Vice-President, Investor Relations, SNC-Lavalin Group Inc., [phone], ext. 7553, [email protected]