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For Immediate Release

Stantec announces second quarter 2010 results

EDMONTON, AB (August 5, 2010) TSX:STN; NYSE:STN

Stantec reports solid, consistent results for the second quarter of 2010. Gross revenue remained stable at $371.1 million. Net revenue was $303.8 million, net income was $22.7 million, and diluted earnings per share were $0.49.

“We are very happy with our progress in the first half of 2010, and we are on track with our expectations,” says Bob Gomes, Stantec president and CEO. “During the second quarter, we saw increased activity in some of our markets, which enabled us to increase our staff levels to approximately 9,700 while continuing to manage our business effectively and achieve solid operating performance. We continue to see opportunities for both organic and acquisition growth in the second half of the year.”

Project activity during the quarter demonstrated Stantec’s continuing ability to secure significant assignments in a still challenging marketplace. In the Buildings practice area, the Company secured a public-private partnership (P3) assignment with the Carillion Secure Solutions team chosen to develop a new Forensic Services and Coroner’s Complex in Toronto, Ontario, for the Ontario Ministry of Community Safety and Correctional Services. This is the second P3 project the Company has secured with the Carillion consortium, following the Centre for Addiction and Mental Health project award in November 2009. In the Environment practice area, the Company secured large, long-term assignments in each of its three key sectors: geotechnical engineering, environmental permitting and remediation, and water and wastewater facility design. For example, Stantec was contracted, as part of a joint venture, to continue to provide geotechnical drilling, sampling, and design services for rebuilding the hurricane protection system in New Orleans, Louisiana, for the U.S. Army Corps of Engineers, New Orleans District. In the area of environmental assessment and permitting, Stantec obtained a contract to provide regulatory support services for a transmission line expansion for AltaLink in southern Alberta. And in the water and wastewater sector, Stantec is part of a team that is completing the detailed design of full-scale enhancements and upgrades to the Dublin Road Water Plant in Columbus, Ohio. New activity in the Transportation practice area was focused in the roadway, transit, and bridge sectors. Most notable in the roadway sector was the award of the Stoney Trail Southeast project in Calgary, Alberta, which is being delivered through a P3. Stoney Trail is Calgary’s new ring road. Stantec’s role on the project team is to design the roadworks and structures for the Highway 22X portion of the project, including approximately 11 kilometres (6.8 miles) of divided highway, four major interchanges, one freeway-to-freeway interchange, and 14 bridge structures and associated retaining walls, as well as drainage and lighting.

Summary of activity in the quarter

Gross revenue for the quarter was C$371.1 million, down 4.4% compared to C$388.1 million in the second quarter of 2009. Net revenue was down 4.5% to C$303.8 million compared to C$318.1 million. Net income was up 1.8% to C$22.7 million compared to C$22.3 million, and diluted earnings per share were C$0.49, unchanged when compared to the same time last year.

§	Year-to-date gross revenue was C$742.7 million, net revenue was C$600.6 million, net income was C$36.4 million, and diluted earnings per share were C$0.79.

§	During the quarter, Stantec renewed its normal course issuer bid with the Toronto Stock Exchange, which will allow for the repurchase of up to 5% of its outstanding shares.

During the quarter, as part of a long-term financing strategy, Stantec filed a short-form shelf prospectus with all securities regulatory authorities in Canada and a corresponding base shelf registration statement with the U.S. Securities and Exchange Commission. Pursuant to the prospectus, the Company may issue up to C$300 million in common shares from time to time during a 25-month period effective May 6, 2010.

During the quarter, Stantec acquired 25-person firm TetrES Consultants Inc., an environmental management consulting firm based in Winnipeg, Manitoba. So far in the third quarter, Stantec has completed the acquisition of three firms, including Industry and Energy Associates, LLC, a 55-person firm headquartered in Portland, Maine, that specializes in engineering and project management services for the energy market; WilsonMiller, Inc., a multidisciplinary planning, design, and engineering firm headquartered in Naples, Florida, with more than 265 employees and 10 offices throughout the state; and Natural Resources Consulting, Inc., a 60-person firm based in Cottage Grove, Wisconsin, that provides environmental permitting and compliance support services. With the completion of these acquisitions, Stantec’s staff levels increased to more than 10,000.

Complete Financial Statements, Notes to the Financial Statements, and Management’s Discussion and Analysis will be filed on Sedar (www.sedar.com) on August 5, 2010. In addition, these documents will be filed on Edgar (www.sec.gov) on the same date. Alternatively, the documents are available to download from the Investors section of www.stantec.com, or you may contact Stantec for copies free of charge.

The second quarter conference call, being held today at 2:00 PM MST (4:00 PM EST), will be broadcast live and archived in the Investors section at www.stantec.com. Financial analysts who wish to participate in the earnings conference call are invited to call 1-866-321-8231 and provide the confirmation code 3714517 to the first available operator.

Stantec provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects. 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 approximately 10,000 employees operating out of more than 150 locations in North America. Stantec trades on the TSX and the NYSE under the symbol STN. Stantec is One Team providing Infinite Solutions.

Media Contact

Jay Averill

Stantec Media Relations

Tel : (780) 917-7441

jay.averill@stantec.com

Investor Contact

Simon Stelfox

Stantec Investor Relations

Tel: (604) 696-8338

simon.stelfox@stantec.com

One Team. Infinite Solutions.

-Income statement and balance sheet attached-

Consolidated Balance Sheets

(Unaudited)

	June 30			December 31
	2010			2009
(In thousands of Canadian dollars)	$			$

ASSETS
Current
Cash and cash equivalents		30,800			14,690
Accounts receivable, net of allowance for doubtful accounts of $ 9,420 ($9,395 – 2009)		256,005			253,205
Costs and estimated earnings in excess of billings		108,480			95,794
Income taxes recoverable		23,385			12,144
Prepaid expenses		10,736			11,352
Future income tax assets		12,699			15,518
Other assets		3,412			6,550

Total current assets		445,517			409,253
Property and equipment		106,363			108,256
Goodwill		475,756			468,814
Intangible assets		64,950			64,155
Future income tax assets		14,612			23,940
Other assets		46,940			49,127

Total assets		1,154,138			1,123,545

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness		4,308			-
Accounts payable and accrued liabilities		143,844			167,175
Billings in excess of costs and estimated earnings		37,521			52,007
Current portion of long-term debt		46,229			35,428
Future income tax liabilities		11,931			15,643
Other liabilities		12,301			13,558

Total current liabilities		256,134			283,811
Long-term debt		216,894			198,769
Future income tax liabilities		30,797			29,536
Other liabilities		64,023			63,849

Total liabilities		567,848			575,965

Non-controlling interest in subsidiaries		103			186

Commitments, contingencies, and guarantees

Shareholders' equity
Share capital		222,450			221,983
Contributed surplus		13,485			12,606
Retained earnings		397,115			364,569
Accumulated other comprehensive loss		(46,863	)		(51,764	)

Total shareholders' equity		586,187			547,394

Total liabilities and shareholders' equity		1,154,138			1,123,545

Consolidated Statements of Income

(Unaudited)

	For the quarter ended June 30						For the two quarters ended June 30
	2010			2009			2010			2009
(In thousands of Canadian dollars, except share and per share amounts)	$			$			$			$

INCOME
Gross revenue		371,168			388,121			742,729			792,921
Less subconsultant and other direct expenses		67,342			70,061			142,123			131,571

Net revenue		303,826			318,060			600,606			661,350
Direct payroll costs		134,581			141,319			266,515			291,163

Gross margin		169,245			176,741			334,091			370,187
Administrative and marketing expenses		124,934			131,301			250,063			279,363
Depreciation of property and equipment		5,766			6,045			11,246			12,360
Amortization of intangible assets		2,917			4,250			7,859			10,426
Impairment of intangible assets		1,772			-			1,772			-
Net interest expense		2,329			3,008			4,009			6,438
Share of income from associated companies		(635	)		(568	)		(1,213	)		(842	)
Foreign exchange losses		822			1,403			1,108			1,971
Other income		(252	)		(204	)		(343	)		(550	)

Income before income taxes		31,592			31,506			59,590			61,021

Income taxes
Current		6,555			8,824			14,722			20,696
Future		2,329			323			8,459			(2,695	)

Total income taxes		8,884			9,147			23,181			18,001

Net income for the period		22,708			22,359			36,409			43,020

Weighted average number of shares outstanding – basic		45,727,380			45,473,500			45,726,090			45,469,180

Weighted average number of shares outstanding – diluted		45,994,449			45,875,464			46,024,452			45,882,267



Shares outstanding, end of the period		45,588,020			45,505,457			45,588,020			45,505,457

Earnings per share
Basic		0.50			0.49			0.80			0.95

Diluted		0.49			0.49			0.79			0.94