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ARCADIS Improves Income at Slightly Lower Revenues.

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AMSTERDAM, August 5 /PRNewswire-FirstCall/ -- - Net Income From Operations Increases 5% in Second Quarter, in First Half Year by 3%

- Slight Decline in Gross Revenues in Second Quarter Despite Positive Currency Effect

- Organic Growth in Infrastructure Partially Offsets Decline in Environment and Buildings

- Margin Maintained at a Good Level; Cash Flow is High

- Merger With Malcolm Pirnie Creates a Top Position in the International Water Market

- Recession may lead to a Slight Decline in net Income From Operations for Full Year 2009

ARCADIS (EURONEXT: ARCAD), the international consulting, design, planning, engineering, and management services company in the second quarter of 2009 improved its net income from operations by 5% to EUR 17.1 million. This good result was achieved because of strong margin performance, despite slightly lower revenues. Gross revenues declined 3% to EUR 415 million, with a positive currency effect of 4% due to a stronger U.S. dollar.

In the first half year of 2009, gross revenues increased 1% to EUR 833 million, helped by a positive currency effect of 4%. The recession mainly impacted the business lines buildings and environment, where revenues declined organically. This was partially offset by organic growth in infrastructure of 10%. On balance, the organic decline in net revenues was limited to 3%. Net income from operations rose 3% to EUR 32.6 million, despite restructuring charges of more than EUR 5 million, which were taken to adjust the organization to the decline in demand. At 9.8%, the margin was almost at the same level as last year. As a result of solid working capital management, cash flow was high.

In early July, the merger with Malcolm Pirnie was closed, a leading U.S.-based consulting and engineering company in the water and environmental markets with more than 1700 employees and gross revenues of $392 million. This gives ARCADIS a leading position in the rapidly growing global water market while we enter the top 10 in our industry in the U.S. with a more balanced services and clients portfolio.

CEO Harrie Noy said: "We anticipated early on the increasingly difficult market conditions by adjusting our capacity, implementing strict cost controls and focusing on clients. As a result our margin was maintained at a good level and revenue decline was limited. The infrastructure market appears best poised against the recession due to government investments. The environmental market declined as industrial clients limit spending, but here we are expanding our market share. The buildings market is under strong pressure with challenging market conditions, particularly in England. The merger with Malcolm Pirnie is a major strategic step for ARCADIS from which we expect significant business and operational synergies."

Key figures Amounts in EUR million, unless Second Quarter First Half Year otherwise noted 2009 2009 Change 2009 2008 Change Gross revenue 415 427 -3% 833 827 1% Net revenue 287 289 -1% 577 566 2% EBITA 28.5 29.5 -3% 56.3 57.0 -1% Net income 16.6 17.0 -3% 36.8 28.6 29% Ditto, per share (in EUR) 0.27 0.28 -2% 0.61 0.47 29% Net income from operations (1) 17.1 16.3 5% 32.6 31.6 3% Ditto, per share (in EUR) (1) 0.28...

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