PRESS RELEASE

Industrial Design and ConstructionTed's News

Thursday, January 27, 2005

IDC & Lockwood Greene Report Progress on New Industrial Client Group Structure

On January 18 IDC's Portland office hosted a presentation by IDC President George Lemmon (PDX) and Lockwood Greene President & CEO Fred Brune.

The presentation updated progress made over the last year in expanding CH2M HILL’s Industrial Client Group, including bringing Lockwood Greene into the CH2M HILL enterprise.

A number of staff from CH2M HILL's Portland office and Lockwood Greene offices were on hand for the presentation by George and Fred.

George described the transition as a "work in progress" that’s succeeding through increased collaboration among CH2M HILL business groups. He explained that the process of integrating Lockwood Greene has been deliberately done in increments, rather than trying to accomplish all of the operational changes in "a single day." George complimented everyone for adjusting to these changes over the past year.

Fred mentioned that Lockwood Greene's offices in Argentina, Brazil, Russia and Thailand are helping to broaden CH2M Hill's international reach. He commented that Lockwood Greene's "Best Value Centers" in strategic international locations have allowed the company to produce and export high-quality design work at lower costs, helping the company become more competitive in all of its global markets.

George recounted that industrial markets have long been important contributors to CH2M HILL's portfolio. He added that the increasing diversification of our industrial projects has not only strengthened the company, but also produced new opportunities for our staff to gain experience in new types of projects and new technologies.

Structure of CH2M HILL’s Industrial Client Group

George and Fred took turns presenting slides that covered highlights of the new structure for CH2M HILL's Industrial Client Group (ICG). Here are some excerpts from their presentation.

Lockwood Greene founded in 1832

IDC formed in 1983 to pursue high technology markets

Energy and Industrial Systems (EIS) formed in 2000, to serve the energy and industrial markets

Communications and Industrial Systems (C&IS) formed in 2003

What Comprises CH2M Hill’s Industrial Client Group (ICG)?

Manufacturing

Chemicals

Pharmaceuticals and Biotechnology

Power and Energy

Electronics

Communications and Information Solutions

Manufacturing

Aerospace

Foods & Beverages

Automotive

Forest Products

Consumer Products

Metals

Discrete Manufacturing

Chemicals, Plastics, and Refining

Specialty Chemicals, Polymers

Refining

Fibers & Plastics

Consumer Products

Bioprocess

Pharmaceuticals and Biotechnology

Biotech

Generics

Medical Devices

University / Incubator Facilities

cGMP Bulk Chemical

Solid Dosage

Laboratories (R&D, QA/QC)

Sterile Fill and Finish

Power

Clean Air

U.S. New Capacity

Sustaining Services

International

Industrial Cogeneration

Environmental Services

Power & Energy

Clean Air

U.S. New Capacity

Sustaining Services

International

Industrial Cogeneration

Environmental Services

Electronics

Key Markets Semiconductors and Flat Panel Manufacturing

United States

China

Taiwan

Singapore

Ireland

Communications & Information Solutions

Wireless & Wireline Telecommunications

Personal Communications Services

Communications Networks

Cyber Security

Program Management

Incident Management

Technology Integration

Key Strategic Objectives

Expand global footprint

Streamline account management

Provide full-service project delivery

Align corporate identity and brand management

Industrial Client Group is Leveraging CH2M HILL Strategies by:

Winning and delivering mega/major projects

Expanding our global footprint

Leveraging technology

Selling the Company Store

Leveraging Technology

Manufacturing

Lean and agile manufacturing

Supply chain management

Logistics management

Site selection

Economic development and analysis

Electronics

Cleanroom technology

First-generation cleanroom design / build

Fluid dynamics

Industrial engineering

Automated material handling

Flat panel display

Communications and Information Solutions

GIS / enterprise geospatial solutions

Emergency first responders’ interoperability system

OSS (network outsourcing)

Wireless encryption

Power

Power generation technologies

Coal, gas, and oil

Renewables

Integrated coal gasification combined cycle

Air pollution control technologies

Pharmaceuticals and biotechnology

Process analytical technology

Drug delivery systems

Nanotechnology

Microspheres

Transdermal

Liposomes

"Modular products" development

Tailored drugs

Disposable biotech

Containment

Chemicals (including plastics and refining)

Chemicals from renewable feedstocks via microbiology

Bioprocess and biotechnololgies

Nanotechnology

Visualization technology

Laser Scanning for Retrofits

Debottlenecking

"It’s Going Great"

The pace of our alignment is controlled by the organization’s ability to manage change

We are managing client service and project teams even though they are in multiple companies and business groups

Capabilities are being consolidated among business groups

Some offices are being combined where multiple companies present

Market segment alignment is announced and underway

More change likely as we learn more



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