Baker Signs Letter of Intent for Sale of Heavy and Highway Unit.

PITTSBURGH--(BUSINESS WIRE)--Nov. 24, 1999--

Michael Baker Corporation (AMEX:BKR) announced today that it has signed a letter of intent with A & L, Inc., of Belle Vernon, Pa., for the sale to A & L of contracts and fixed assets of Baker Heavy and Highway, Inc., the company's transportation construction subsidiary. Terms of the agreement were not disclosed.

A & L intends to employ substantially all current employees of Baker Heavy and Highway. In addition, A & L, Inc., will continue the company's operations in Pittsburgh, Buffalo, Chicago and St. Louis. This acquisition will augment its ongoing, growing transportation businesses.

Commenting on the proposed transaction, Richard L. Shaw, chairman and CEO said, "We are pleased to be close to concluding the sale of Baker Heavy and Highway. This, along with wind down of our Buildings Construction business early next year, will complete our exit from the high-risk, low margin construction business. This represents an important first step in our plan to focus on the operations that we've shown we can manage successfully."

A & L, Inc., is a heavy and highway contractor.

Michael Baker Corporation (www.mbakercorp.com) provides engineering, management and operations services through its five business units: buildings, civil, energy, environmental, and transportation.