• Positive trends continued across the board in the second quarter
• Organic gross revenue: record rise of 19% with strong growth in all segments and regions
• Net income from operations rose 19% in second quarter, 26% in the first half year
• Margin improved considerably
• Acquisition RTKL is a milestone for ARCADIS
• Outlook remains good: expected increase of net income from operations 2007: 20 to 25%

ARCADIS (EURONEXT: ARCAD), the international consultancy and engineering company, has again booked excellent results, also for the second quarter of 2007. Gross revenues increased 19% to € 348 million. At 19% organic growth reached record levels and was high in all three service areas, with environment performing best at 25% growth. Geographically, growth was strongest in the United States and Brazil, while the Netherlands and most other European countries also saw growth at high levels. Net income from operations rose 19% to € 14.0 million.

In the first half year of 2007 gross revenues increased by 17% to € 680 million. Organic growth came out to 17%. Net income from operations increased 26% to € 26.8 million. This strong profit growth was a result of the growth of activities, a further margin improvement and the sale of carbon credits in Brazil. The margin improved to 9.8% versus 8.6% last year.

At the beginning of July, the water specialist Alkyon was acquired in the Netherlands (gross revenues € 4.5 million, 45 employees) allowing the Company to more effectively meet the growing demand for water management services resulting from climate change. Also early July, the acquisition was completed of U.S. based RTKL (gross revenues $ 195 million, 1050 employees), one of the worlds foremost companies in architectural design and planning. Both companies will be consolidated as of the third quarter of 2007.

CEO Harrie Noy about the results: "The excellent figures are in part a result of the strengthened focus on growth and margin improvement in three service areas that offer plenty of opportunity. In environment, we benefit from the integration of BBL, our advanced environmental technology, as well as our strong position with multinational clients. Internal cooperation aimed at synergy is creating new possibilities that employees are using as much as they can. The acquisition of RTKL fits within our strategy to expand services higher in the value chain and allows us to reach a leading position in the facilities service area with more involvement in large real estate development programs."

Key figures

Amounts in € millions, unless otherwise stated	Second quarter			First half
	2007	2006	D	2007	2006	D
Gross revenue	348	293	19%	680	581	17%
EBITA	23.8	19.2	25%	46.4	35.3	31%
Net income	13.2	10.6	25%	24.8	19.6	27%
Net income per share (in €) 1)	0.65	0.52	24%	1.22	0.97	26%
Net income from operations 2)	14.0	11.8	19%	26.8	21.2	26%
Ditto, per share (in €) 1,2)	0.68	0.58	18%	1.31	1.05	25%

1) In 2007 based on 20.4 million shares outstanding (in 2006: 20.2 million)
2) Excluding amortization and non-operational items

Analysis

Second quarter
The 19% increase in gross revenues was mainly the result of organic growth. The currency effect was 3% negative and was caused by a decline of the U.S. dollar, in the quarter this was somewhat compensated for by the increase in value of the Brazilian real. The contribution from acquisitions and divestments on balance was limited to 3% as a result of the sale of Euroconsult at the end of the first quarter. The organic growth of 19% came from all regions and was strongest in the United States and South America. In the Netherlands, organic growth rose to 14% while in other European countries, particularly the U.K., Belgium and Poland, activities saw strong growth. In Poland, delays in project start-ups appear to have ended.

Net revenues rose by 16%. The contribution from acquisitions and divestments was 6%, the currency effect 3% negative. At 13% organic growth was at a high level, but lower than for gross revenues. This was mainly the result of an increase of remediation projects in the environmental market and growth in facility management, both with a lot of third-party work.

EBITA increased 25% to € 23.8 million. Acquisitions and divestments contributed 9%; the currency effect was 3% negative. The organic increase of 19% mainly resulted from growth and profit improvement in the Netherlands, the U.S., Brazil, Belgium and Poland. The contribution from the sale of carbon credits in Brazil was limited in the quarter.

Net income from operations rose 19% to € 14.0 million. This is somewhat less than the increase in EBITA, particularly as a result of higher financing charges. These rose as a result of the growth, while last year a non-recurring interest gain was booked of € 0.5 million.

First half year
Gross revenues increased 17%. The currency effect was 4% negative, the contribution from acquisitions and divestments 4% positive. At 17% organic growth was at a high level. All regions contributed to this growth, most notably the United States and South America. At 11%, the Netherlands and other European countries also saw strong organic growth.

Net revenues were 16% higher, of which 12% organic. The contribution from acquisitions was 7%, the currency effect negative 3%.
 
The EBITA rose 31%, of which 11% as a result of acquisitions and divestments. The currency effect was 5% negative. The organic increase amounted to 25%. This includes a contribution of € 2.1 million from the sale of carbon credits. Excluding this contribution, EBITA grew organically at 19%. This reflects the solid business development in almost all countries in which ARCADIS is active.

Net income from operations increased 26%. This is somewhat less than the increase in EBITA as a result of higher financing charges, a smaller contribution from associated companies and an increase in minority interest as a result of the favorable operational results in Brazil.

The strong revenue growth caused an increase in working capital, although as a percentage of gross revenues it is almost at the same level as last year. Long-term debt increased due to the financing arrangements created for the financing of RTKL.

Developments per service area
Figures noted below concern gross revenues for the first half year of 2007 compared to the same period last year.

• Infrastructure
Gross revenues increased 12%. Acquisitions contributed 2%, the currency effect was minus 2%. Organic growth amounted to 12% and was strongest in Brazil and Chile, driven by investments in mining and energy projects. In the United States, poor conditions in the housing market led to a decline in land development, but this was more than compensated for by strong growth in the water market. In Europe especially the activities in Poland and to a lesser extent Belgium saw strong growth. In the Netherlands organic growth was at a good level of 9%. An ARCADIS consortium was selected as preferred bidder for the second Coentunnel, one of the largest new PPP projects in the Netherlands.
• Environment
Gross revenues increased 18%. The contribution from acquisitions was 2%; the currency effect minus 7%. The very strong organic growth of 23% mainly came from the United States where our market share is increasing thanks to the combination with BBL. Brazil also experienced strong activity growth, particularly in services for multinational companies. This was also a strong driver in Europe, where almost all countries contributed to growth. The introduction within ARCADIS of a consistent policy for health and safety, including monitoring procedures, has strengthened our competitive position.
• Facilities
Gross revenues grew 29%, of which 16% through acquisitions. This included PinnacleOne in the United States and some smaller acquisitions in the Netherlands, Belgium and Germany. The currency effect was nil. Organic growth amounted to 13%, mainly through expansion of management and consultancy services in the Netherlands, Germany, and the United Kingdom, also supported by the favorable real estate investment climate.

Outlook
The good economic conditions have a positive effect on infrastructure investments. In many countries, PPP initiatives are developed to tackle infrastructure issues quicker with the help of private funding. In the United States, the land development market is expected to remain soft, but water and transportation will contribute to growth. The attention for sustainability and climate change creates growth in the environmental market. Our strong position with multinational clients is a good basis for further expansion of our market share. The facilities market offers excellent opportunities for project management and other high level services, also as a result of the acquisition of RTKL. Because RTKL will operate as a separate entity, attention can be focused on achieving top line synergies. Examples are integrated services packages for facilities, redevelopment of contaminated urban areas and using the geographic footprint of ARCADIS.

CEO Noy concludes: "The market is favorable and the outlook for the whole of 2007 is good. The acquisition of RTKL is a milestone for ARCADIS with new possibilities to be involved in large scale urban development and renewal. By focusing on activities with higher added value, we expect to be able already this year to reach the margin target of 10%, which we introduced last year. Further expansion through acquisitions remains high on our priority list. Barring unforeseen circumstances we expect an increase in net income from operations for full year 2007 from 20 to 25%."

ARCADIS is an international company providing consultancy, engineering and management services in infrastructure, environment and facilities, to enhance mobility, sustainability and quality of life. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With more than 12,000 employees and over €1.4 billion in gross revenue, the company has an extensive international network that is supported by strong local market positions.
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with possible changes in environmental legislation and risks with regard to the Company's ability to acquire and execute projects. These and other risks are described in ARCADIS' filings with the Securities and Exchange Commission over the last 12 months, copies of which will be available from the SEC or may be obtained upon request from the Company.