Valuation Update for the Engineering and
Construction Industry

The markets have been experiencing unprecedented volatility. While selective transactions were completed across a range of industries in September and despite unified global central bank efforts at providing the market liquidity and reducing the cost of capital, risk aversion is rampant across all asset classes including both public and private securities, which is causing most buyers and investors to sit on the sidelines. We continue to monitor market events and their impact on transactions, valuations, and outlook, and to work closely with our clients to evaluate their options and opportunities in this market.

Highlighted below are several transactions announced during the third quarter of 2008:

• General Finance Corporation (AMEX: GFN) entered into a definitive agreement to acquire Pac-Van, Inc. from a group of investors led by Laminar Direct Capital, L.P. for approximately
  US$153 million. Pac-Van, headquartered in Indianapolis, Indiana, provides modular buildings, mobile offices, and portable storage equipment. The company constructs modular buildings, such as churches, schools, homebuilder sales offices, and sports buildings. (Source: Company Press Release and Capital IQ, July 28, 2008)
  
  
• MasTec, Inc. (NYSE: MTZ) acquired NSORO, LLC for approximately US$29.5 million. NSORO, based in Atlanta, Georgia, engages in designing, supplying, and supporting technology solutions for the commercial and government verticals. The company provides site modification
  and maintenance services, including lawn and grounds care, HVAC and generators maintenance, engineering and design, construction, maintenance, and project management services. The transaction implied a valuation multiple of 0.4x 2007 revenue. (Source: Company Press Release and Capital IQ, July 31, 2008)
  
  
• URS Corporation (NYSE: URS) completed two acquisitions in August. URS acquired Dallas, Texas-based LopezGarcia Group, Inc., a provider of engineering design and environmental planning services. URS also acquired Anchorage, Alaska- based Tryck Nyman Hayes, Inc., a provider of engineering and surveying services. The terms of the transactions were not disclosed. (Source: Company Press Release and Capital IQ, August 18 and August 25, 2008)
  
  
• Kingspan Group plc (ISE: KRX) acquired Metecno USA from Metecno S.p.A. for approximately US$111 million. Metecno, based in Deland, Florida, manufactures insulated composite panels, and architectural single element metal wall and roof panels for the construction market. It offers Granitstone, a factory-applied acrylic aggregate finish with the architectural appearance of stucco. The transaction implied a valuation multiple of 0.8x 2007 revenue and 8.2x 2007 EBITDA. (Source: Company Press Release and Capital IQ, August 22, 2008)
  
  
• Cardno Limited acquired TBE Group Inc. for approximately US$48 million. TBE, based in Clearwater, Florida, provides consulting engineering services. Its services include construction and civil engineering, environmental management, right-of-way acquisition and relocation, transportation planning and design, subsurface utility engineering, utility coordination
  and design, and land development. (Source: Company Press Release and Capital IQ, September 15, 2008)