Stantec Marks 54th Consecutive Year of Profitability With Strong Fourth Quarter and Year End Results

EDMONTON, ALBERTA -- (MARKET WIRE) -- Feb 21, 2008 -- Stantec Inc. (TSX: STN) (NYSE: SXC):

- For the full year 2007, Stantec generated gross revenue of C$954.6 million, a 17.0% increase from C$816.1 million last year. Net revenue was C$830.9 million up 17.4% compared to C$707.9 million in 2006 and net income increased 15.1% to C$69.3 million from C$60.2 million. Diluted earnings per share were 14.5% higher at C$1.50 compared to C$1.31 in 2006.

- In the fourth quarter 2007, gross revenue increased to C$258.3 million from C$211.8 million in 2006, an increase of 22.0%. Net revenue increased 19.5% to C$215.9 million compared to C$180.6 million in the fourth quarter of 2006 and net income was up 21.8% to C$19.0 million compared to C$15.6 million. Diluted earnings per share were up 20.6% to C$0.41 compared to C$0.34 in the fourth quarter last year.

- In 2007, Stantec added eleven companies; Vancouver, British Columbia architecture firm, Nicolson Tamaki Architects Inc. with 10 employees; New York City based Vollmer Associates, a 600-person design firm with offices throughout the northeastern United States; Land Use Consultants, Inc., a planning and landscape architecture firm in Portland, Maine with approximately 20 employees; Geller DeVellis Inc. of Boston which added about 50 employees specializing in landscape architecture, planning, and civil engineering; Neill and Gunter, a full service consulting engineering firm with approximately 650 employees primarily located in Fredericton, New Brunswick; Halifax, Nova Scotia; and Portland, Maine along with Woodlot Alternatives, a firm with 65 people also in Portland, Maine; Trico Engineering Consultants, Inc, a North Charleston, South Carolina firm with about 130 employees specializing in civil engineering, surveying, landscape architecture, and planning; Chong Partners Architecture, Inc., one of San Francisco, California's most recognized architecture firms with approximately 175 employees and additional offices in Sacramento and San Diego; Stantec also added Toronto, Ontario's Murphy Hilgers Architects Inc., a 55-person firm specializing in healthcare, justice, and retail/commercial facilities and Moore Paterson Architects Inc., a 17-person firm in Victoria, British Columbia; at the end of 2007, Fuller, Mossbarger, Scott & May Engineers of Lexington, Kentucky joined Stantec adding over 300 employees specializing in civil, environmental, geotechnical, structural, and water resources engineering as well as specialized and targeted areas in Geographic Information Systems (GIS), particularly in floodplain mapping.

- Complete Financial Statements, Notes to the Financial Statements, and Management's Discussion and Analysis will be filed on Sedar ( and Edgar ( on February 21, 2008 and are available to download from the investor relations section on You may also contact Stantec for a copy of the documents.

"Our 54th year was among the busiest in the history of Stantec and we're pleased to report solid growth in our fourth quarter and annual results," says Tony Franceschini, Stantec President & CEO. "We're encouraged by the way the many new employees that have joined Stantec in 2007 have quickly begun to team with other professionals and locations to share knowledge and add their talents to our strong North American network."

The strength of Stantec's growing, integrated network is reflected in the types of projects the firm worked on in 2007. For example, the firm secured a contract to provide architecture; planning; landscape architecture; and structural, mechanical, electrical, civil, and transportation engineering services for the development of a new 300-bed acute care hospital in Grand Prairie, Alberta. The firm was also awarded an assignment to provide design solutions for a renovation of the Sheraton New York Hotel and Towers in New York City. Stantec's Industrial group is designing facilities and infrastructure for the Athabasca Upgrader in northern Alberta for Total E&P Canada Ltd. In addition Stantec was selected as one of six companies to complete various projects for the Department of National Defence across Canada over the next five years and in the fourth quarter Stantec was awarded an assignment to complete the preliminary design and planning of the C-17 hanger at Canadian Forces Base Trenton in Ontario. During the year, the firm's expertise in transit systems resulted in contracts to provide system integration analysis and planning services for several light rail transit projects in the southern United States. In addition, work was completed on the improvements to the TransCanada Highway through the challenging terrain of Kicking Horse Canyon in British Columbia.

"It is great to see our staff across the continent putting together integrated teams to provide our clients with a full suite of services for their projects," says Franceschini. "This was the main goal of our vision we set in 1998 to be a top 10 global design firm. We now have the resources, expertise, and depth and breadth of services of a top 10 firm and it is because of the efforts of our employees the past nine years that Stantec has been able to grow and successfully compete with the largest firms in our industry every day."

Stantec's Annual Meeting of Shareholders will be held on May 1, 2008, at 11:00 AM MDT (1:00 PM EDT) at University of Alberta's Enterprise Square in Edmonton, Alberta, 10230 - Jasper Avenue. The Fourth Quarter and Year-End Conference Call, being held today at 2:00 PM MST (4:00 PM EST), will be broadcast live and archived in the Investor Relations section at . Financial analysts who wish to participate in the earnings conference call are invited to call 1-866-322-2356 and provide the confirmation code 5564365 to the first available operator.

Stantec provides professional design and consulting services in planning, engineering, architecture, surveying, economics, and project management. We support public and private sector clients in a diverse range of markets in the infrastructure and facilities sector at every stage, from initial concept and financial feasibility to project completion and beyond. Our services are offered through over 8,500 employees operating out of more than 125 locations in North America. Stantec trades on the TSX under the symbol STN and on the NYSE under the symbol SXC. Stantec is One Team providing Infinite Solutions.

Cautionary note regarding forward-looking statements

This press release contains "forward-looking statements". Some of these statements may involve risks and uncertainties and other factors that may be beyond the control of Stantec and cause actual results to be materially different from those contained in such forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Stantec's filings with the Canadian provincial securities commissions and the United States Securities and Exchange Commission.

Consolidated Balance Sheets

                                            December 31         December 31
                                                   2007                2006
(In thousands of Canadian dollars)                    $                   $

Cash and cash equivalents                        14,175              28,363
Restricted cash                                       -               1,545
Accounts receivable, net of allowance for
 doubtful accounts of $10,508 in 2007
 ($6,303 - 2006)                                206,063             164,968
Costs and estimated earnings in excess of
 billings                                        65,064                         41,152
Income  taxes  recoverable                                                    5,019                              3,993
Prepaid  expenses                                                                    6,617                              6,591
Future  income  tax  assets                                                  13,308                              9,711
Other  assets                                                                          13,002                              8,228

Total  current  assets                                                        323,248                          264,551
Property  and  equipment                                                      88,156                            65,009
Goodwill                                                                                332,922                          251,491
Intangible  assets                                                                32,288                            22,819
Future  income  tax  assets                                                  12,074                              9,984
Other  assets                                                                          24,873                            20,616

Total  assets                                                                        813,561                          634,470

Accounts  payable  and  accrued  liabilities                155,020                          107,132
Billings  in  excess  of  costs  and  estimated
  earnings                                                                                34,423                            28,721
Income  taxes  payable                                                            9,955                              7,425
Current  portion  of  long-term  debt                                21,549                              4,181
Future  income  tax  liabilities                                        11,750                            12,236

Total  current  liabilities                                              232,697                          159,695
Long-term  debt                                                                      74,539                            12,046
Future  income  tax  liabilities                                        20,718                            18,273
Other  liabilities                                                                42,909                            33,561

Total  liabilities                                                              370,863                          223,575

Commitments,  contingencies,  and  guarantees

Shareholders'  equity
Share  capital                                                                      218,790                          212,781
Contributed  surplus                                                              6,266                              5,458
Deferred  stock  compensation                                                (110)                              (250)
Retained  earnings                                                              286,780                          217,750
Accumulated  other  comprehensive  income
  (AOCI)                                                                                  (69,028)                        (24,844)

Total  shareholders'  equity                                            442,698                          410,895

Total  liabilities  and  shareholders'  equity            813,561                          634,470

On  behalf  of  the  Board  of  Directors:

Director                                                                    Director

Consolidated  Statements  of  Income

Years  ended  December  31                                                    
(In  thousands  of  Canadian  dollars,  except  per        2007              2006              2005
  share  amounts)                                                                          $                    $                    $

Gross  revenue                                                                  954,619        816,133        618,020
Less  subconsultant  and  other  direct  expenses    123,731        108,206          93,468

Net  revenue                                                                      830,888        707,927        524,552
Direct  payroll  costs                                                    360,101        304,677        234,553

Gross  margin                                                                    470,787        403,250        289,999
Administrative  and  marketing  expenses                  351,346        292,064        212,992
Depreciation  of  property  and  equipment                  19,038          15,604          12,389
Amortization  of  intangible  assets                              3,702            6,132            2,542
Net  interest  expense                                                        1,594            1,892                571
Share  of  income  from  associated  companies                (292)            (285)            (187)
Foreign  exchange  gains                                                  (2,480)              (74)            (449)
Other  income                                                                      (1,235)        (1,507)            (359)

Income  before  income  taxes                                          99,114          89,424          62,500

Income  taxes
Current                                                                                34,994          31,484          21,735
Future                                                                                  (5,159)        (2,242)              143

Total  income  taxes                                                          29,835          29,242          21,878

Net  income  for  the  year                                                69,279          60,182          40,622

Earnings  per  share
Basic                                                                                        1.52              1.34              1.02
Diluted                                                                                    1.50              1.31              0.99


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