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Gammon Wins Harbour Area Treatment Scheme Contract

Gammon Construction Limited has been awarded a HK$3.76 billion contract by the Hong Kong Government's Drainage Services Department for the construction of Sewage Conveyance System from North Point to Stonecutters Island. This is the largest single civil engineering contract ever won by the Company.

The contract, which forms a main part of the Harbour Area Treatment Scheme (HATS) Stage 2A, comprises the construction of three deep tunnels to collect and convey the current preliminarily treated sewage along the north of Hong Kong Island and under the Victoria Harbour to Stonecutters Island for chemical treatment. It also involves the construction of eight shafts.

The three tunnels, totalling 12 kilometres in length and up to 165 metres in depth, will be constructed using drill and blast techniques.

To enhance safety of the project, a specialized Tunnel Personnel Tracking System will be developed. Electrically powered equipment has also been selected for the tunnelling operation to enhance the working environment. Other advanced equipment to be used on the project includes computerized drilling jumbos and computerized grouting injection systems.

Commenting on the contract award, Thomas Ho, Chief Executive of Gammon said: "Our collective skill sets, advanced technological standards and expertise in tunnelling work, including our experience on HATS Stage 1 are key factors in the contract award.

"As a major player in the market, Gammon's commitment to safety and high quality as exemplified in our works has underpinned our contribution to the industry and the community." Mr Ho added.

Construction of the project will begin by end of July 2009 and is due for completion in 2014. A total workforce of nearly 500 will be employed.

Issued by the Corporate Communications Department of Gammon Construction Limited. For further information please contact:

Candy Chan    Tel: + 852 2516 8733