INSITUFORM TECHNOLOGIES, INC. REPORTS FIRST QUARTER RESULTS.

MEMPHIS, Tenn.--(BUSINESS WIRE)--May 3, 1996--Insituform Technologies, Inc. ("ITI") (Nasdaq National Market: INSUA) today reported results for the first quarter ended March 31, 1996.

For the quarter ended March 31, 1996, total revenues were $68,110,000, up 9.4% from 1995 first quarter revenues of $62,263,000. Construction revenue increased 10.9% to $60,696,000 for the period as compared to $54,744,000 for the same period last year, while product sales revenue increased 0.7% to $5,760,000 from $5,720,000 during the same period last year.

Increased construction contract revenue in 1996 reflects the impact of the acquisition of Insituform Southeast, Inc. and affiliates in April 1995, whose revenue for the first quarter of 1996 totaled $6,754,000, while product sales revenue for the quarter reflects the elimination of $668,000 in 1996 intercompany sales to the same wholly-owned contracting company.

Net income in the first quarter of 1996 was $2,250,000 or $.08 per share as compared to $3,420,000 or $.13 per share during the same period last year. The October 1995 combination with Insituform Mid- America, Inc. ("IMA") has been accounted for as a pooling-of-interests and, accordingly, ITI's financial information gives retroactive effect to the transaction, as if ITI and IMA had operated as a single entity for the periods presented.

Commenting, J-P Richard, President and Chief Executive Officer of ITI, stated, "The first quarter of 1996 was characterized by extremely severe weather conditions in large sections of North America, which made it impossible for some of our crews to operate or achieve satisfactory productivity levels. Weather alone is the primary reason for the weakness in our revenues and contracting margins as well as the resulting disappointing earnings. March was back to normal but revenues were not sufficient to offset a very poor start. Current expectations appear in line with our business plan.

"On the strategic front, the reorganization of our Company following the merger with IMA is progressing satisfactorily with the emphasis continuing to be on the reduction of our product and installation costs in our core wastewater market and the increased penetration of the new emerging markets such as industrial, natural gas and drinking water."

Instituform Technologies, Inc. is a worldwide provider of proprietary trenchless technologies for the rehabilitation and improvement of sewer, water, gas and industrial pipe. The Company owns the worldwide rights to the Instituform(R) and NuPipe(R) processes and exercises the exclusive rights in substantially all of North America to the PALTEM(R) system and certain other products under a license from Ashimori Industry Co., Ltd. The Company also owns the worldwide rights to the Tite Liner(R) process used primarily to protect or restore pipes affected by abrasion or corrosion. Through its Affholder, Inc. subsidiary, the Company is also engaged in trenchless tunneling used in the installation of new underground services. By providing specialized rehabilitation technologies which eliminate or minimize disruptive digging, the Company provides cost-effective solutions for problems caused by deteriorated pipe systems. -0-

                   INSITUFORM TECHNOLOGIES, INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS
                         (Unaudited)
            (In thousands, except per share amounts)

                                         For the Three Months
                                            Ended March 31,
                                          1996         1995

Revenues:
  Construction Contracts                $60,696       $54,744
  Product Sales                           5,760         5,720
  Royalties and license fees              1,654         1,799
Total revenues                           68,110        62,263

Operating costs and expenses:
Cost of construction contracts           42,273        36,550
Cost of product sales                     3,705         4,044
Royalty expense                             132            84
Selling, administrative and general      14,755        13,170
Strategic marketing and product
 development                              2,065         1,981

Total operating costs and expenses       62,930        55,829

Operating income                          5,180         6,434
Interest expense                         (1,569)       (1,379)
Other income                                407           479
Income from continuing operations
 before taxes on income                   4,018         5,534
Taxes on income                           1,651         2,067
Income from continuing operations
 before minority interest and
 equity in earnings                       2,367         3,467
Minority interests                         (174)         (348)
Equity in earnings of affiliated
 companies                                   57           301

Net income                            $  2,250       $  3,420

Earnings per share of common stock
 and common stock equivalents:
Net income                            $   0.08       $   0.13

Weighted average common and
 common equivalent shares               27,235         27,160

CONTACT: Insituform Technologies, Inc.

Jean-Paul Richard, Pres. & CEO 

[phone]

or

ITI'S INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Linda Latman [phone]