Fortress International Group Closes $130 Million in New Work for the 4th Quarter 2007

COLUMBIA, Md., Jan. 28 /PRNewswire-FirstCall/ -- Fortress International Group (Nasdaq: FIGI), holding company for Total Site Solutions (TSS), a company providing comprehensive services for the planning, design and development of mission-critical facilities and information infrastructure, today announced new engagements for services, including technology consulting, construction management and facility maintenance totaling more than $130 million for the fourth quarter of 2007, bringing booked business for 2007 to more than $211 million. This compares with $9 million of new business booked in the fourth quarter of 2006 and $34 million of new business booked for the full year 2006.

Leading the new engagements in the fourth quarter are two contracts totaling $118 million from a significant new customer relationship. This new customer relationship started as a consulting engagement awarded in the third quarter and continued to grow in scope, underscoring the go-to-market strategy outlined by the Company. The customer is a US based company and is a leading provider of conditioned data center and Internet services with a world wide customer base.

The new business brings work to all Fortress business units and includes technology consulting, owner representation, at risk design-build construction management and facilities management services. A break down of the divisional work booked for the quarter is as follows:

Tom Rosato , Chief Executive Officer of Fortress commented, "These new project awards were developed from two sources. Approximately $6 million of the new business came from our newly acquired subsidiaries Rubicon and Innovative Power. The balance of the new projects awarded were a direct result of the investment in sales and marketing we initiated in 2006 and continued in 2007. Our plan was to gain national awareness of our technical skills and the value add that our combined suite of services, which includes technology consulting, construction management, and facilities management, brings to customers small and large throughout the mission-critical market. These awards are a tremendous validation of that effort. They are also an illustration that awareness of our expertise is growing in markets outside our local Baltimore-Washington area. Among the new customers added in the fourth quarter are Verizon, Internap, Digital Realty, American Power Conversion, Johns Hopkins University Applied Physics Lab, Howard Hughes Medical Center, Valmont Industries, Merkle Inc., and Wyle Labs."

Gerard Gallagher , CEO/President of Total Site Solutions added, "The need expressed by these customers is indicative of the strong and rising demand for improved mission-critical facilities. The technology industry in general and the mission-critical sector in particular are experiencing a severe shortage of needed space for their facilities. This demand for space cannot be satisfied with existing facilities and this shortage is helping to drive growth. A large portion of these awards arose from our distinct ability to deliver energy efficient, complex design/build projects on-time and within budget, and is indicative of our growing reputation in the mission-critical market."

Chief Financial Officer Tim Dec commented, "This new business will have a significant positive impact on our financial performance in 2008. The business covers work in all three of our divisions and we anticipate realizing approximately 60% of the revenue during the course of 2008. These projects will assist us in meeting our long term objective of significant growth in the coming years."

ABOUT TOTAL SITE SOLUTIONS

Total Site Solutions (TSS) plans, designs, builds and maintains specialized facilities such as data centers, trading floors, call centers, network operation centers, communication facilities, laboratories and secure facilities. For more than a quarter-century, the TSS team has pioneered building robust and scalable infrastructure into mission-critical facilities. The firm offers unsurpassed expertise in the infrastructure systems (electrical, mechanical, telecommunications, security, fire protection and building automation) that are the critical facility's lifeblood. TSS's comprehensive portfolio of services and multi-disciplinary expertise provide customers a highly respected single source for critical services that bridge the gap between IT and facilities.

Headquartered in the Baltimore-Washington corridor, TSS provides complete turnkey facility services from the initial planning stages, to construction, to ongoing maintenance of the completed project. Its clients include the world's most demanding mission-critical organizations, including Fortune 500 firms and US government agencies. For more information, visit www.totalsitesolutions.com or call 888-321-4TSS (4877).

FORWARD-LOOKING STATEMENTS

This release may contain "forward-looking statements"-that is, statements related to future-not past-events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the company's future results include: the company's reliance on a significant portion of its revenues from a limited number of customers; the uncertainty as to whether the company can replace its declining backlog; risks involved in properly managing complex projects; risks relating to revenues under customer contracts, many of which can be canceled on short notice; risks related to the implementation of the company's strategic plan, including the ability to make acquisitions and the performance and future integration of acquired businesses; and other risks and uncertainties disclosed in the company's filings with the Securities and Exchange Commission. These uncertainties may cause the company's actual future results to be materially different than those expressed in the company's forward-looking statements. The company does not undertake to update its forward-looking statements.

SOURCE Fortress International Group



Loading