ARCADIS Completes Niche Acquisition in Spain.

Business Editors

ARCADIS (NASDAQ: ARCAF;EURONEXT: ARCAD) today announced that it has recently acquired a Spanish company called Casta through its Spanish subsidiary Grupo EP - in which ARCADIS holds a 50% stake.

Casta specializes in facility management services and has focused its activities around residences for dependent senior people. The company's strategy is to widen its scope of activities to also include services to more general residences for seniors. Gross revenues of Casta amount to approximately EUR 4 million. The company employs 140 people (mostly part-time), and currently has a total of some 340 beds under management. Financial details regarding the transaction were not disclosed.

The acquisition of Casta fits with ARCADIS' strategy to further develop its position in the market for facility management. The market segment in which Casta is active, and a number of factors are driving growth in this area. Firstly, the average age of people in Spain is rising, and it is expected that in a few decades Spain will be the country with the highest percentage of senior inhabitants in Europe. Secondly, there is an inflow of senior people from other European countries, attracted by the mild Spanish climate. Finally, on average only 3% of people over 65 years old in Spain live in geriatric residences, while the average for Europe is 5%. The current demand for additional spaces in special care facilities and senior homes in Spain is approximately 170.000 beds.

For ARCADIS' Spanish activities, this acquisition fits well with existing activities and provides access to an attractive new market segment. "We have previous experience in facility and project management activities which can be a valuable contribution to Casta, particularly when it comes to managing the technical aspects of these facilities. Conversely, Casta brings know-how on the other aspects of managing these types of units, such as staffing and health care management systems," says Luis Villarroya, Chief Executive Officer for Grupo EP. "I therefore see this acquisition as an important step in the development of a new business line and a strategic diversification of our market presence. We have operations spread throughout Spain, and therefore we believe we can help Casta grow faster than it would be able to as a stand-alone unit."

ARCADIS is a leading, global, knowledge-driven service provider, active in the fields of infrastructure, buildings, environment and communications. With client success central to our total business approach, we fulfill project or program needs from concept to completion and beyond. Together, we generate EUR 800 million in annual revenues. There are 8,000 of us, results-oriented people, continually investing in our skills to maximize value while creating viable solutions that assure your success.

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.