<DOCUMENT>
<TYPE>EX-99.26
<SEQUENCE>29
<FILENAME>t17577exv99w26.txt
<DESCRIPTION>EX-99.26
<TEXT>
<PAGE>

                                                        Stantee Inc.
                                                           2004
                                                  Second Quarter Report

                                                 Six Months Ended June 30

                                                      [LOGO STANTEC]

        stantec.com

      10160-122 STREET
  EDMONTON AB CANADA T5K 2L6
        ir@stantec.com
       [LOGO 50 YEARS]

<PAGE>

FIRST QUARTER 2004 FINANCIAL HIGHLIGHTS

-     Gross revenue for the quarter increased 8.2% to $117.3 million, compared
      to $108.4 million in Q1 03. Net revenue increased 9.7% to $103.6 million,
      compared to $94.4 million in Q1 03

-     Net income for the quarter increased 12.9% to 5.7 million, compared to
      $5.0 million in Q1 03

-     Basic earnings per share for the quarter were 14.8% higher at $0.31,
      versus $0.27 in Q1 03

REPORT TO SHAREHOLDERS

Following the celebration of our Company's first 50 years in business and
continuous profitability, I am pleased to report that we are beginning our next
business era with continued strong performance. Net income for the quarter
increased 12.9% from the first quarter of 2003, and basic earnings per share
increased 14.8%. Our results for the first quarter of 2004 reflect our
commitment to continue to execute our focused business strategy.

Over the past year, we have strengthened our business model by bolstering
several of our practice areas to better serve our clients. In this report, I
would like to highlight some of the enhancements we have made in the Buildings
market segment to our Architecture & Interior Design group. We have expanded
this group to one of the leading practices in Canada. During the first quarter
of 2004, the group was certified to the International Organization for
Standardization's (ISO) environmental management system standard (ISO 14001),
making it the first architecture and interior design practice in Canada to
achieve this registration. This accomplishment complements the group's earlier
certification to the ISO's quality management system standard (ISO 9001:2000)
and the certification of many of our staff in Leadership in Energy &
Environmental Design (LEEDTM) from the U.S. Green Building Council.

Our increased presence in the Buildings market segment has strengthened our
ability to offer both single-source and multiteam project delivery to clients,
contributing to new project activity across the Company. For example, our
Program & Project Management team is providing project management support
services for a multiyear expansion program to improve the Halifax International
Airport in Nova Scotia. The program includes renovation of the airport's
domestic and

<PAGE>

international arrivals areas and south-end hold rooms, expansion of the main
lobby retail area and public parking lot, and construction of an airside
subdivision and water treatment facility. In addition, our Architecture &
Interior Design group is acting as the associate architect for the improvement
program for one end of the airport terminal.

In western Canada, we are providing architectural design and mechanical
engineering services for the development of a new soccer center in Saskatoon,
Saskatchewan. Encompassing six indoor soccer pitches and two outdoor soccer
fields, the center will be part of a joint-use complex that also includes a high
school and community recreation facilities. In addition, our Facilities Planning
& Operations group has undertaken a project to develop the master plan and
functional program for a 500-bed expansion and major renovations to the Rocky
View General Hospital in Calgary, Alberta. Other new contracts obtained this
quarter include assignments to provide structural engineering services for the
development of a new law court facility in Calgary; mechanical engineering
services for an addition and renovations to the Western College of Veterinary
Medicine at the University of Saskatchewan in Saskatoon; mechanical engineering
services for the development of a new acute care regional hospital facility in
Swift Current, Saskatchewan; and structural and electrical engineering services
for the development of a performing arts center for handicapped and impaired
function individuals at the Victoria School for the Performing Arts in Edmonton,
Alberta.

In the US Southwest & West, we are providing a complete range of Buildings
services--surveying, architecture, and mechanical, electrical, and civil
engineering--for the design of a new 480,000-square foot (44,593-square metre)
warehouse at the US Department of Defense distribution depot in Tracy,
California, for the US Army Corps of Engineers. With a minimum height of 26 feet
(eight metres) for stacking bulk materials, this general-purpose warehouse will
include a 5,000-square foot (465-square metre) administration and utility annex.
Our Buildings Engineering group has also been awarded an assignment to design
and administer the construction of a process cooling water distribution system
for the University of Arizona's large binocular telescope located at Mt. Graham,
Arizona. This project will require capacity assessments, load flow calculations,
and specification of air handling units, among other specialty services.

<PAGE>

In the US Southeast, work continues on the design of a new Science & Engineering
Research Building for Research Triangle Institute (RTI) International, one of
the world's premier research institutes, based in Research Triangle Park, North
Carolina. We are providing full architecture and engineering design services as
the prime design consultant for the project. The award of this project follows
the successful completion of a previous assignment with RTI International--the
development of a master plan for its 185-acre (75-hectare) research campus--in
2002.

Going forward, we will continue to evolve the depth and breadth of our Buildings
services as we fulfill our commitment to pursue excellence in design and project
delivery and to follow an orderly growth plan through our focused business
model.

/s/ Tony Franceschini
------------------------------
Tony Franceschini, P.Eng.
President & CEO
May 6, 2004

<PAGE>

Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                         MARCH 31          December 31
(Columnar figures stated in thousands of Canadian dollars)                2004                2003
                                                                         ---------         -----------
                                                                         Unaudited
<S>                                                                      <C>               <C>
ASSETS
CURRENT
Cash                                                                     $   8,144         $     7,343
Accounts receivable                                                        104,279              87,101
Costs and estimated earnings in excess of billings                          48,984              67,094
Income taxes recoverable                                                     4,567               6,921
Prepaid expenses                                                             2,481               3,246
Future income tax assets                                                     6,908               5,924
                                                                         ---------         -----------
                                                                           175,363             177,629
Property and equipment                                                      67,708              67,670
Investment in associated companies                                           1,749               1,844
Investments - other                                                          1,145               1,137
Goodwill                                                                    69,825              69,696
Intangible assets                                                            4,983               5,112
Future income tax assets                                                     2,619               3,487
                                                                         ---------         -----------
                                                                         $ 323,392         $   326,575
                                                                         =========         ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness                                                        $  32,493         $    17,151
Accounts payable and accrued liabilities                                    52,397              70,255
Billings in excess of costs and estimated earnings                          16,271              16,882
Current portion of long-term debt [note 4]                                  12,953              13,416
Future income tax liabilities                                                9,815              10,802
                                                                         ---------         -----------
                                                                           123,929             128,506
Long-term debt [note 4]                                                     25,347              31,159
Future income tax liabilities                                                6,306               6,382
                                                                         ---------         -----------
                                                                           155,582             166,047
                                                                         =========         ===========

SHAREHOLDERS' EQUITY
Share capital [note 5]                                                      85,053              84,281
Contributed surplus [note 5]                                                 2,019               1,842
Cumulative translation account                                             (12,831)            (13,861)
Retained earnings                                                           93,569              88,266
                                                                         ---------         -----------
                                                                           167,810             160,528
                                                                         ---------         -----------

                                                                         $ 323,392         $   326,575
                                                                         =========         ===========
</TABLE>

See accompanying notes

<PAGE>

Consolidated Statements of Income and Retained Earnings

<TABLE>
<CAPTION>
                                                                                                   For the quarter ended
                                                                                                           March 31
(Columnar figures stated in thousands of Canadian dollars except per share amounts)(Unaudited)    2004                2003
----------------------------------------------------------------------------------------------  ----------         -----------
                                                                                                                    Restated
                                                                                                                    [note 2]
<S>                                                                                             <C>                <C>
INCOME
GROSS REVENUE                                                                                   $  117,317         $   108,440
Less subconsultant and other direct expenses                                                        13,751              14,002
                                                                                                ----------         -----------

NET REVENUE                                                                                        103,566              94,438
Direct payroll costs                                                                                47,540              44,882
                                                                                                ----------         -----------

GROSS MARGIN                                                                                        56,026              49,556
Administrative and marketing expenses                                                               43,809              38,840
Depreciation of property and equipment                                                               2,624               2,186
Amortization of intangible assets                                                                      137                 254
Net interest expense                                                                                   674                 611
Foreign exchange losses                                                                                 11                 181
Share of income from associated companies                                                             (125)               (436)
                                                                                                ----------         -----------

INCOME BEFORE INCOME TAXES                                                                           8,896               7,920
                                                                                                ----------         -----------
INCOME TAXES
Current                                                                                              4,420               1,890
Future                                                                                              (1,182)              1,018
                                                                                                ----------         -----------
                                                                                                     3,238               2,908
                                                                                                ==========         ===========

NET INCOME FOR THE PERIOD                                                                       $    5,658         $     5,012
                                                                                                ==========         ===========

RETAINED EARNINGS, BEGINNING OF PERIOD, AS PREVIOUSLY REPORTED                                  $   88,266         $    64,905
Prior period adjustment [note 2]                                                                         -                (665)
                                                                                                ----------         -----------
RETAINED EARNINGS, BEGINNING OF THE PERIOD, AS RESTATED                                             88,266              64,240
Net income for the period                                                                            5,658               5,012
Shares repurchased [note 5]                                                                           (355)               (257)
                                                                                                ==========         ===========
RETAINED EARNINGS, END OF PERIOD                                                                $   93,569         $    68,995
                                                                                                ==========         ===========

Weighted average number of shares outstanding - basic                                            18,373,983         18,305,053
                                                                                                ==========         ===========
Weighted average number of shares outstanding - diluted                                          19,176,483         19,085,852
                                                                                                ==========         ===========
Shares outstanding, end of period                                                                18,464,818         18,339,784
                                                                                                ==========         ===========

EARNINGS PER SHARE

 Basic [note 2]                                                                                 $     0.31         $      0.27
                                                                                                ==========         ===========
 Diluted [note 2]                                                                               $     0.30         $      0.26
                                                                                                ==========         ===========
See accompanying notes
</TABLE>

<PAGE>

Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                               For the quarter ended
                                                                                      March 31
(Columnar figures stated in thousands of Canadian dollars)(Unaudited)            2004          2003
-------------------------------------------------------------------------     ---------     ----------
<S>                                                                           <C>           <C>

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES

Cash receipts from clients                                                    $ 124,568     $  108,599
Cash paid to suppliers                                                          (43,866)       (31,508)
Cash paid to employees                                                          (82,241)       (74,024)
Dividends from equity investments                                                   200              -
Interest received                                                                 1,747            931
Interest paid                                                                    (2,360)        (1,569)
Income taxes paid                                                                (2,066)        (5,562)
                                                                              ---------     ----------

CASH FLOWS USED IN OPERATING ACTIVITIES                                          (4,018)        (3,133)
                                                                              ---------     ----------

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

Business acquisitions, including cash acquired and bank indebtness
 assumed [note 3]                                                                     -         (3,709)
Proceeds on disposition of investments                                                -             47
Purchase of property and equipment                                               (4,750)        (6,384)
Proceeds from disposition of property and equipment                                  33          1,324
                                                                              ---------     ----------

CASH FLOWS USED IN INVESTING ACTIVITIES                                          (4,717)        (8,722)
                                                                              ---------     ----------

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES

Repayment of long-term debt                                                      (6,275)        (8,626)
Repurchase of shares for cancellation [note 5]                                     (439)          (357)
Proceeds from issue of share capital [note 5]                                       855            419
                                                                              ---------     ----------

CASH FLOWS USED IN FINANCING ACTIVITIES                                          (5,859)        (8,564)
                                                                              ---------     ----------

FOREIGN EXCHANGE GAIN (LOSS) ON CASH HELD IN FOREIGN CURRENCY                        53           (458)
                                                                              ---------     ----------

NET DECREASE IN CASH                                                            (14,541)       (20,877)
Cash, beginning of the period                                                    (9,808)        29,202
                                                                              ---------     ----------

CASH, END OF THE PERIOD                                                       $ (24,349)    $    8,325
                                                                              ---------     ----------
CASH CONSISTS OF

Cash and cash equivalents                                                     $   8,144     $    8,325
Bank indebtedness                                                               (32,493)             -
                                                                              ---------     ----------
                                                                              $ (24,349)    $    8,325
                                                                              =========     ==========
</TABLE>

See accompanying notes

<PAGE>

Notes to Consolidated Financial Statements

1. GENERAL ACCOUNTING POLICIES

These unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles on a basis
consistent with those used in the preparation of the annual December 31, 2003,
consolidated financial statements. Because the disclosures included in these
interim financial statements do not conform in all respects to the requirements
of generally accepted accounting principles for annual financial statements,
these financial statements should be read in conjunction with the December 31,
2003, annual consolidated financial statements. In management's opinion, these
interim consolidated financial statements include all the adjustments necessary
to present fairly such interim financial statements. The consolidated statements
of income and retained earnings and cash flows for interim periods are not
necessarily indicative of results on an annual basis due to seasonal and
short-term variations as well as the timing of acquisitions, if any, during
interim periods.

2. PRIOR PERIOD ADJUSTMENT

During 2003, the Company determined, with the assistance of an independent
valuator, that intangible assets acquired in post June 30, 2001, acquisitions
had not been properly identified and valued in the purchase allocation. As a
result, a portion of the purchase price of these acquisitions was allocated to
identifiable intangible assets (contract backlog, client relationships,
technology, and non-compete agreements). The adjustment was made retroactively
and resulted in the following changes to previously reported financial
information:

<TABLE>
<CAPTION>
                                                                                 Quarter ended
(in thousands of dollars, except earnings per share amounts)                     March 31, 2003
---------------------------------------------------------------                -------------------
                                                                                   Increase
                                                                                   (Decrease)
<S>                                                                            <C>
Amortization of intangible assets                                              $               254
Income before income taxes                                                                    (254)
Income taxes                                                                                   (96)
Net income for the period                                                                     (158)
Retained earnings, beginning of the period                                                    (665)
Goodwill acquired [note 3]                                                                    (631)
Intangible assets acquired [note 3]                                                            998
Future income tax liabilities aquired [note 3]                                                 367

Earnings per share - basic                                                                   (0.01)
Earnings per share - diluted                                                                 (0.01)
</TABLE>

<PAGE>

3. BUSINESS ACQUISITIONS

Acquisitions are accounted for under the purchase method of accounting, and the
results of earnings since the respective dates of acquisition are included in
the consolidated statements of income. The purchase prices of acquisitions are
generally subject to price adjustment clauses included in the purchase
agreements. From time to time, as a result of the timing of acquisitions in
relation to the Company's reporting schedule, certain of the purchase price
allocations may not be finalized at the time of initial reporting. In the case
of some acquisitions, the additional consideration payable based on future
performance parameters may be adjusted upward or downward. As at March 31, 2004,
the maximum contingent consideration that may be payable in 2004 and future
years is approximately $1,168,000. Such additional consideration is recorded as
additional goodwill in the period in which confirmation of the consideration to
be paid is known.

During the first quarter of 2004, the Company reduced the purchase price in
connection with the Cosburn Patterson Mather Limited (2002), The Spink
Corporation (2001), and the APAI Architecture Inc. (2003) acquisitions pursuant
to price adjustment clauses in the purchase agreements.

During the first quarter of 2003, the Company acquired the shares and businesses
of APAI Architecture Inc. and Mandalian Enterprises Limited for consideration
consisting of cash and promissory notes. The Company also paid additional
contingent consideration in connection with the Cosburn Patterson Mather Limited
(2002) acquisition and reduced the purchase price on the English Harper Reta
Architects (2002) and Site Consultants, Inc. (2002) acquisitions pursuant to
price adjustment clauses included in the purchase agreements.

Details of the aggregate consideration given and the fair values of net assets
acquired or adjusted in the first quarter of each year are as follows:

<TABLE>
<CAPTION>
(in thousands of dollars)                                                     2004             2003
---------------------------------------------------------------------       ----------       ----------
<S>                                                                         <C>              <C>
Cash consideration                                                          $        -       $    2,000
Promissory notes, due 2003 through 2007                                           (205)           3,614
                                                                            ----------       ----------
PURCHASE PRICE                                                              $     (205)      $    5,614
                                                                            ==========       ==========

Assets and liabilities acquired at fair values
 Bank indebtedness assumed                                                  $        -       $   (1,709)
 Non-cash working capital                                                           71            2,407
 Property and equipment                                                              -              745
 Goodwill [note 2]                                                                (276)           4,004
 Intangible assets [note 2]

  Client realtionships                                                               -              598
  Contract backlog                                                                   -              300
  Technology                                                                         -              100
 Long-term debt                                                                      -             (579)
 Future income taxes [note 2]                                                        -             (252)
                                                                            ----------       ----------
NET ASSETS ACQUIRED                                                         $     (205)      $    5,614
                                                                            ==========       ==========
</TABLE>

All of the goodwill is non-deductible for income tax purposes.

<PAGE>

4. LONG-TERM DEBT

<TABLE>
<CAPTION>
                                                                                   As at March 31
                                                                            ---------------------------
(in thousands of dollars)                                                     2004             2003
-------------------------------------------------------------               --------         ----------
<S>                                                                         <C>              <C>
Non-interest bearing note payable                                           $    105         $       96
Other non-interest bearing notes payable                                       9,669             21,913
Bank loan                                                                     17,860             23,888
Mortgages payable                                                             10,520             10,890
Other                                                                            146                363
                                                                            --------         ----------
                                                                              38,300             57,150
Less current portion                                                          12,953             23,151
                                                                            --------         ----------
                                                                            $ 25,347         $   33,999
                                                                            ========         ==========
</TABLE>

All of the Company's assets are held as collateral under a general security
agreement for the bank indebtedness and bank loan. The mortgages payable are
supported by first mortgages against land and buildings.

Interest expense on long-term debt in the first quater of 2004 interest was
$495,000 (Q1 03 - $ 751,000).

5. SHARE CAPITAL

<TABLE>
<CAPTION>
                                                                       As at March 31
                                                   ------------------------------------------------------
                                                               2004                          2003
Common shares issued and outstanding               -------------------------       ----------------------
(in thousands of dollars)                          # OF SHARES         $           # of shares      $
------------------------------------------         -----------      --------       -----------   --------
<S>                                                <C>              <C>            <C>           <C>
Balance, beginning of the period                    18,327,284      $ 84,281        18,282,720   $ 83,973
Share options exercised for cash                       155,434           855            78,164        419
Shares repurchased under normal course
  issuer bid                                           (17,900)          (83)          (21,100)       (97)
                                                   -----------      --------       -----------   --------
Balance, end of the period                          18,464,818      $ 85,053        18,339,784   $ 84,295
                                                   ===========      ========       ===========   ========
</TABLE>

During Q1 04, 17,900 common shares (2003 - 21,100) were repurchased for
cancellation pursuant to an ongoing normal course issuer bid at a cost of
$439,000 (2003 - $357,000). Of this amount, $83,000 and $1,000 (2003 - $97,000
and $3,000) reduced the share capital and contributed surplus accounts
respectively, with $355,000 (2003 - $257,000) being charged to retained
earnings.

A share-based compensation expense of $267,000 (2003 - $148,000) was recognized
in Q1 04. The amount relating to the fair value of options granted ($178,000;
2003 - $148,000) was reflected through contributed surplus, and the amount
relating to deferred share unit compensation ($89,000; 2003 - nil) was reflected
through accrued liabilities.

<PAGE>

6. SEGMENTED INFORMATION

The Company provides comprehensive professional services in the area of
infrastructure and facilities throughout North America and internationally. The
Company considers the basis on which it is organized, including geographic areas
and service offerings, in identifying its reportable segments. Operating
segments of the Company are defined as components of the Company for which
separate financial information is available that is evaluated regularly by the
chief operating decision maker in allocating resources and assessing
performance. The chief operating decision maker is the Chief Executive Officer
(CEO) of the Company.

During 2003, the Company had seven operating segments of which five were
aggregated into the Consulting Services reportable segment. The two remaining
operating segments (Design Build and Technology), which were below the
quantitative thresholds in the recommendations of the Canadian Institute of
Chartered Accountants, were disclosed in the Other reportable segment. In
addition to the above-noted operating segments, corporate administration groups
also report to the CEO and were included in the Other reportable segment.

The Design Build operating segment consisted of the operations of our 50% share
of Lockerbie Stanley Inc. that, at December 31, 2003, was reflected as assets
held for sale pending the finalization of an agreement to sell our interest. The
Company continues to have an agreement in principle to sell its 50% interest
and, therefore, no activity related to this operating segment has been reflected
in its financial statements in 2004.

Effective 2004, because of the pending sale of our Design Build operation and
because the Technology segment is not material, all operations of the Company
are included in one reportable segment as Consulting Services.

<TABLE>
<CAPTION>
                                                                        Quarter ended March 31
                                             ------------------------------------------------------------
                                                 2004                               2003
                                             -------------       ----------------------------------------
                                              CONSULTING         Consulting
(in thousands of dollars)                      SERVICES           Services         Other        Total
--------------------------------------       -------------       ----------        ------     -----------
<S>                                          <C>                 <C>                  <C>     <C>
Gross revenue                                $     117,317       $  107,751           689     $   108,440
Operating income                             $       9,456       $    7,482           794     $     8,276
Segment assets                               $     323,392       $  253,555        34,596     $   288,151
</TABLE>

7. SUBSEQUENT EVENTS

Subsequent to the quater-end, the Company acquired the shares and business of
The Sear-Brown Group, Inc. for cash consideration of US$8,375,000.

8. COMPARATIVE FIGURES

Certian comparative figures have been reclassified to conform to the
presentation adopted for the current year.

<PAGE>

Management's Discussion and Analysis

This discussion and analysis, dated April 23, 2004, of Stantec's operations and
financial position should be read in conjunction with the Company's 2003
consolidated financial statements and related notes, as well as Management's
Discussion and Analysis included in the 2003 Annual Report and the Report to
Shareholders contained in the 2004 First Quarter Report. Additional information
regarding the Company, including the Annual Information Form, is available on
SEDAR at www.sedar.com.

This report includes forward-looking statements that are based on current
expectations and are therefore subject to risks and uncertainties. These
statements can be identified by the use of forward-looking terminology such as
"expects," "believes," "may," "will," "should," "estimates," "anticipates," or
the negative thereof or other variations thereon. The Company cautions readers
that, by their nature, forward-looking statements involve risk and uncertainties
and that the Company's actual actions or results may differ materially.

This report includes references to and uses terms that are not specifically
defined in the Canadian Institute of Chartered Accountants Handbook and do not
have any standardized meaning prescribed by Canadian generally accepted
accounting principles (GAAP). These non-GAAP measures may not be comparable to
similar measures presented by other companies. The Company may refer to and use
the terms "net revenue" and "gross margin" throughout its analysis. Net revenue
is defined as gross revenue less subconsultant and other direct expenses. Gross
margin is defined as net revenue less direct payroll costs.

OVERVIEW OF FIRST QUARTER 2004

The Company continues to use the same accounting policies and methods as those
used in 2003. We announced our first acquisition for the year 2004 effective
April 2. The results of The Sear-Brown Group, Inc. acquisition will be included
in the second quarter of 2004.

<PAGE>

KEY OPERATING RESULTS

The Company's key quarterly results are as follows:

<TABLE>
<CAPTION>
                                                                       Quarter ended
(in thousands of dollars, except per share amounts) 2004                 March 31,
--------------------------------------------------------------         --------------
<S>                                                                    <C>
Gross revenue                                                          $      117,317
Net income                                                             $        5,658
EPS - basic                                                            $         0.31
EPS - diluted                                                          $         0.30
</TABLE>

The following table summarizes the Company's key operating results on a
percentage of net revenue basis and the percentage increase in the dollar amount
of these results on a quarter-to-quarter basis:

<TABLE>
<CAPTION>
                                                                    QUARTER ENDED MARCH 31
                                                               ------------------------------------
                                                                  % OF NET REVENUE       % INCREASE
                                                               -----------------------   ----------
                                                                                           2004VS.
                                                                  2004           2003       2003
                                                               ----------       ------   ----------
<S>                                                            <C>              <C>      <C>
GROSS REVENUE                                                       113.3%       114.8%       8.2%
NET REVENUE                                                         100.0%       100.0%       9.7%
Direct payroll costs                                                 45.9%        47.5%       5.9%
GROSS MARGIN                                                         54.1%        52.5%      13.1%
Administrative and marketing expenses                                42.3%        41.1%      12.8%
Depreciation of property and equipment                                2.5%         2.4%      20.0%
Amortization of intangible assets                                     0.1%         0.3%     (46.1%)
Net interest expense                                                  0.7%         0.6%      10.3%
Foreign exchange losses                                               0.0%         0.2%     (93.9%)
Share of income from associated companies                             0.1%         0.5%     (71.3%)
INCOME BEFORE INCOME TAXES                                            8.6%         8.4%      12.3%
Income taxes                                                          3.1%         3.1%      11.3%
NET INCOME FOR THE PERIOD                                             5.5%         5.3%      12.9%
                                                               ----------        -----   --------
OUTSTANDING COMMON SHARES - AS AT MARCH 31, 2004               18,464,818
OUTSTANDING COMMON SHARES - AS AT APRIL 23, 2004               18,480,318
                                                               ----------
</TABLE>

<PAGE>

GROSS REVENUE

Gross revenue for Q1 04 increased $8.9 million to $117.3 million from $108.4
million. Approximately $4.7 million of this increase was from the growth in
revenue from acquisitions completed in 2002 and 2003, and $9.7 million was from
existing operations. The impact of changes in foreign exchange rates on revenues
earned by foreign subsidiaries accounted for a decrease of $5.5 million.

GROSS MARGIN

Gross margin as a percentage of net revenue was 54.1% for Q1 04, compared to
52.5% for Q1 03. We expect our annual gross margin in 2004 to be in the range of
52 to 54% of net revenues. Margins may fluctuate from quarter to quarter as a
result of the mix of projects in progress during any quarter.

ADMINISTRATIVE AND MARKETING EXPENSES

Administrative and marketing expenses as a percentage of net revenue were 42.3%
for the first three months of 2004, compared to 41.1% for 2003 and to our annual
expectation of between 39 and 41%. Administrative and marketing expenses may
fluctuate from quarter to quarter as a result of the amount of staff time
charged to marketing and administrative labor, which is influenced by the mix of
projects in progress and being pursued during the quarter.

FINANCIAL CONDITION AND LIQUIDITY

During the first quarter of 2004, the net decrease in our cash was $14.5
million, compared to a decrease of $20.9 million in the first quarter of 2003.
The lower payments made in the first quarter of 2004 for acquisitions and
long-term debt repayments were offset by the additional funds used in
operations. At year-end, as a result of our business information system
implementation, we experienced a significant increase in our investment in costs
and estimated earnings in excess of billings. During the first quarter of 2004,
we were able to reduce our level of investment in this account (i.e., number of
days' revenues) to 39 days compared to 52 days at December 31, 2003. This was
accomplished by accelerating the pace of invoicing to clients, which in turn
resulted in an increase in our investment in accounts receivable to 82 days from
67 days. We anticipate that the number of days invested in accounts receivable
will decline as these accounts are collected. Our overall investment in these
accounts continues to be significant, and as a result, we have extended the
temporary increase in our revolving credit facility (from $20 million to $50
million) to the end of May 2004 (from February 28, 2004). We expect our combined
level of investment in these two accounts to reduce over the next quarter and
improve our cash flow from operations.

<PAGE>

SHAREHOLDER INFORMATION

TRANSFER AGENT                      SECURITIES EXCHANGE LISTING
CIBC Mellon Trust Company           Stantec shares are traded on
Calgary, Alberta                    the Toronto Stock Exchange
                                    under the symbol STN.
AUDITORS
Ernst & Young LLP                   INVESTOR RELATIONS
Chartered Accountants               Stantec Inc.
Edmonton, Alberta                   10160 - 112 Street
                                    Edmonton AB
PRINCIPAL BANK                      Canada T5K 2L6
Canadian Imperial Bank of           Tel: (780) 917-7000
Commerce                            Fax: (780) 917-7330
                                    ir@stantec.com
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