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News Release

For Immediate Release

Stantec announces third quarter 2007 results

EDMONTON AB (November 1, 2007) TSX:STN; NYSE:SXC

In the third quarter of 2007 gross revenue increased 11.9% to C$235.3 million compared to C$210.2 million for the same period in 2006. Net revenue increased 13.7% to C$207.0 million compared to C$182.0 million and net income was up 5.5% to C$17.4 million from C$16.5 million. Diluted earnings per share were up 5.6% to C$0.38 in the third quarter 2007 compared to C$0.36 in 2006.

Year-to-date 2007 gross revenue increased 15.2% to C$696.3 million compared to C$604.3 million over the first nine months of 2006. Net revenue increased 16.6% to $615.0 million compared to C$527.3 million while net income increased 12.8% to C$50.3 million compared to C$44.6 million. Diluted earnings per share were up 12.4% to C$1.09 compared to C$0.97 for the same period in 2006.

In the quarter Stantec completed the acquisition of Trico Engineering Consultants, Inc. in North Charleston, South Carolina adding about 130 employees specializing in civil engineering, surveying, landscape architecture, and planning. The Company also acquired San Francisco firm, Chong Partners Architecture with approximately 175 employees and additional offices in Sacramento and San Diego.

In addition at the beginning of the fourth quarter Stantec completed the acquisitions of 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.

Complete Financial Statements, Notes to the Financial Statements, and Management’s Discussion and Analysis will be filed on Sedar (www.sedar.com) and Edgar (www.sec.gov) on November 1, 2007 and are available to download from the investor relations section on www.stantec.com. You may also contact Stantec for a copy of the documents.

"The continuing consistency of our results this quarter reflects the ability of our business model to adapt to changing market conditions throughout North America," says Tony Franceschini, Stantec President & CEO. “While we have experienced a slight slowdown in the Urban Land area we are seeing strong growth in our Industrial and Environment areas and we have a positive outlook for our Transportation and Buildings practices."

Projects awarded to Stantec this quarter demonstrate the Company’s growing service offering and geographic diversity. Stantec was awarded a contract by the City of Anaheim, California to provide on call design services for water and sewer treatment, pipeline, pump station, and reservoir infrastructure projects through to January 2009. In Manitoba and Colorado the Company is providing annual bridge inspections for hundreds of bridges for Manitoba Infrastructure and Transportation and the Colorado Department of Transportation, respectively. In New York City the Buildings group continues to work on the restoration and rehabilitation of the interior of New York City Hall, a historic landmark originally built in 1811, for the New York City Department of City-Wide Administrative Services. This assignment, which follows various projects we have completed at the building since 1998, brings together our expertise in architecture, structural engineering, preservation/restoration, high-definition scanning (a laser survey technology used to create three-dimensional electronic models), and sustainable design consulting and filing for Leadership in Energy and Environmental Design®Existing Building (LEED-EB) certification. In Alberta the Industrial group is providing engineering services for the installation of infrastructure at the Athasbasca Upgrader, a bitumen-processing facility owned by Total E&P Canada Ltd. Drawing on expertise from several of our practice areas, the scope of work will include water management planning and studies; raw water intake and pipeline engineering; wastewater treatment and effluent pipeline engineering; environmental impact assessment submission support; rail logistics and materials handling engineering; the design of administration, control, and fire hall buildings; and access road and administration area studies.

“Our employees continue to execute Stantec’s business strategy by effectively taking advantage of work sharing opportunities and teaming up with experts throughout the Company to win projects and provide value to our clients,” says Franceschini.

The third quarter Conference Call, to be held today at 4:00 PM EDT (2:00 PM MDT), will be broadcast live and archived on Stantec's web site at stantec.com in the Investor Relations section.

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 7,500 employees operating out of more than 100 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.

Media Contact

Jay Averill

Media Relations

Stantec

Tel: 780-917-7441

Investor Contact

Don Wilson

Sr. VP & CFO

Stantec

Tel: 780-917-7269

Continued – Balance Sheet and Income Statement attached

Consolidated Balance Sheets
(Unaudited)
	September 30			December 31
	2007			2006
(In thousands of Canadian dollars)	$			$

ASSETS (note 4)
Current
Cash and cash equivalents		12,021			28,363
Restricted cash		-			1,545
Accounts receivable, net of allowance for doubtful accounts of
$13,558 in 2007 ($7,379 – 2006)		198,969			168,474
Costs and estimated earnings in excess of billings		56,318			39,924
Prepaid expenses		5,312			6,591
Future income tax assets		12,016			9,711
Other assets (note 3)		10,897			8,228

Total current assets		295,533			262,836
Property and equipment		75,720			65,009
Goodwill		252,334			251,491
Intangible assets		21,503			22,819
Future income tax assets		11,198			9,984
Other assets (note 3)		21,546			18,338

Total assets		677,834			630,477


LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness		1,088			-
Accounts payable and accrued liabilities		115,739			107,132
Billings in excess of costs and estimated earnings		35,338			28,721
Income taxes payable		4,719			3,432
Current portion of long-term debt (note 4)		6,254			4,181
Future income tax liabilities		12,180			12,236

Total current liabilities		175,318			155,702
Long-term debt (note 4)		29,714			12,046
Future income tax liabilities		15,563			18,273
Other liabilities (note 5)		38,041			33,561

Total liabilities		258,636			219,582


Shareholders' equity
Share capital		215,238			212,781
Contributed surplus		5,612			5,458
Deferred stock compensation		(118	)		(250	)
Retained earnings		268,080			217,750
Accumulated other comprehensive income (note 8)		(69,614	)		(24,844	)

Total shareholders' equity		419,198			410,895

Total liabilities and shareholders' equity		677,834			630,477

See accompanying notes

Consolidated Statements of Income
(Unaudited)

	For the quarter ended						For the three quarters ended
	September 30						September 30
	2007			2006			2007			2006
(In thousands of Canadian dollars, except shares outstanding and
per share amounts)	$			$			$			$

INCOME
Gross revenue		235,381			210,147			696,341			604,258
Less subconsultant and other direct expenses		28,395			28,161			81,356			76,979

Net revenue		206,986			181,986			614,985			527,279
Direct payroll costs		90,714			78,375			268,386			229,410

Gross margin		116,272			103,611			346,599			297,869
Administrative and marketing expenses (notes 7 and 11)		85,121			72,927			257,489			213,751
Depreciation of property and equipment		4,797			4,250			13,125			11,354
Amortization of intangible assets		800			1,599			2,558			4,833
Net interest expense (note 4)		387			432			711			1,814
Share of income from associated companies		(93	)		(48	)		(187	)		(212	)
Foreign exchange (gains) losses		(194	)		99			(1,290	)		(20	)
Other income (note 3)		(334	)		(147	)		(926	)		(1,308	)

Income before income taxes		25,788			24,499			75,119			67,657

Income taxes
Current		11,211			9,583			26,859			25,204
Future		(2,898	)		(1,498	)		(2,070	)		(2,098	)


Total income taxes		8,313			8,085			24,789			23,106

Net income for the period		17,475			16,414			50,330			44,551

Weighted average number of shares outstanding –
basic		45,578,416			45,115,818			45,542,534			45,048,970

Weighted average number of shares outstanding –
diluted		46,252,398			46,011,515			46,168,452			45,960,117

Shares outstanding, end of the period		45,602,754			45,076,781			45,602,754			45,076,781

Earnings per share
Basic		0.38			0.36			1.11			0.99
Diluted		0.38			0.36			1.09			0.97

One Team. Infinite Solutions.