Insituform Technologies makes announcement

Business Wire, May 24, 1995

MEMPHIS, Tenn.--(BUSINESS WIRE)--May 24, 1995--Insituform Technologies, Inc. ("ITI") (Nasdaq National Stock Market:INSUA) today announced that it had entered into a memorandum of understanding to settle the previously disclosed shareholder class action against ITI in the United States District Court for the Western District of Tennessee (Neil Weinberg, on behalf of himself and all others similarly situated, Plaintiffs, v. Insituform Technologies, Inc., et al. Defendants), alleging various misstatements and omissions relating to, among other things, acquisition and restructuring costs arising from the acquisition of Insituform Group Limited in December 1992, in public disclosures by ITI during the period from October 28, 1992 to May 12, 1993 in violation, among other things, of Rule 10b-5.

ITI stated that, under the settlement, which remains subject to execution of an appropriate stipulation of settlement, court approval and other customary conditions, ITI would make a cash payment to class members in the amount of $3.2 million and issue to class members 30,000 shares of ITI's class A common stock, $.01 par value, which ITI estimates, if implemented, would result in an after-tax charge against 1995 net income in the order of approximately $2 million.

J-P Richard, President and Chief Executive Officer of ITI, commented that, "While the Company continues to believe it had meritorious defenses to plaintiffs' claims, it was management's view that, under the circumstances, settlement under the terms reached was in the best interests of the Company given estimated expenses to take the case to trial."

Insituform Technologies, Inc. provides state-of-the-art techniques for the reconstruction of deteriorated pipelines utilizing trenchless processes, and owns the worldwide rights to the Insituform(R) Process. By eliminating the need for disruptive excavation, ITI believes the Insituform(R) Process provides a cost-effective solution to the problem of deteriorated pipe systems. Insituform Technologies, Inc. also offers the NuPipe(R) Process in the United States and overseas and is engaged in the rehabilitation of pipeline for the mining and oil and gas industry under the UltraPipe(R) name.

CONTACT: Insituform Technologies, Inc.

Jean-Paul Richard, Pres. & CEO

(901) 759-7473

or

ITI'S INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Linda Latman

(212) 836-9609