SNC-Lavalin Awarded Contract for Aluminum Smelter Expansion in Dubai

SNC-Lavalin has been awarded a new contract by the Dubai Aluminum Company (DUBAL) for work on its Jebel Ali aluminum smelter in Dubai. SNC-Lavalin will be providing engineering, procurement and construction management (EPCM) services on the project, which has an overall capital cost of approximately CDN $330 million.

The EPCM contract is for the expansion of two existing potlines, as well as construction management services for a new alumina silo. The expanded potlines are expected to increase the smelter's capacity by more than 100,000 tonnes of liquid aluminum a year.

"We have been working with DUBAL on this site since 2004 and we see it as a vote of confidence that we have been selected to carry out another contract at this state-of-the-art smelter complex," said Pierre Ranger, Vice-President, SNC-Lavalin Group Inc.

Potlines are comprised of a series of electrolytic cells in which alumina is reduced to high purity aluminum metal. Work has begun and the completion date is projected to be fall 2006.

"DUBAL is expanding the capacity of its Jebel Ali smelter to meet increased demand from our customers in the United States, the Far East, the Middle East, Europe, and the ASEAN and Mediterranean regions," said AJM Kalban, DUBAL Chief Executive Officer. "This deal will also strengthen our business relationship with SNC-Lavalin."

SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership and management of infrastructure, and a key player in facilities and operations management. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries.

http://www.snclavalin.com

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