As announced earlier, on September 30, 2009, the Company sold its former Energy business segment for $37.9 million, plus a net asset adjustment which is estimated to be $9.3 million. As a result of this disposition, the financial results of the former Energy segment have been reclassified as discontinued operations for all periods presented in the condensed consolidated financial statements. The information contained in this news release pertains to Baker's continuing operations, while the Company's 10-Q, which is being filed with the SEC concurrent with this announcement, presents a complete discussion of both continuing and discontinued operations.

For the quarter, Baker reported income from continuing operations of $7.0 million, or $0.78 per diluted share, on total contract revenues of $110 million. This compares to income from continuing operations of $6.9 million, or $0.78 per diluted share, on total contract revenues of $119 million in the third quarter of 2008. The higher income from continuing operations, on lower revenue, is attributable primarily to an increase in equity income from the Company's unconsolidated joint venture operating in Iraq. The decrease in revenue for the current period relates to a net decline of $7.3 million in work performed for the Federal Emergency Management Agency (FEMA) and a decrease of $0.9 million in work directly performed by Baker as a subcontractor to the previously mentioned unconsolidated joint venture operating in Iraq. This was partially offset by a $0.6 million increase in project incentive awards compared to the third quarter of 2008, and increases on several existing transportation projects.

Operating income in the third quarter of 2009 was $7.5 million, compared to $10.2 million in the same period in 2008. This year-over-year decrease is attributable primarily to the lower revenue mentioned earlier and an increase in incentive compensation accruals based on year-to-date achievement toward the plan targets. Other income was $3.4 million in the current quarter compared to $1.1 million in the prior period, primarily due to a $2.8 million increase in equity income from the unconsolidated joint venture operating in Iraq.

Total backlog for continuing operations at September 30, 2009 was $1.43 billion, compared to $984 million at December 31, 2008. Of these totals, $438 million and $450 million are considered funded backlog. Included in funded backlog at September 30, 2009, was $47 million related to the Company's FEMA Map Modernization contract, compared to $68 million at December 31, 2008.

On the balance sheet as of September 30, 2009, the Company had a cash balance of approximately $73 million and no long-term debt. In addition, at September 30, 2009, the Company had a receivable related to the sale of the Energy segment of $47.2 million, consisting of $37.9 million, which was received shortly after the close of the transaction, and an estimated $9.3 million for net asset adjustments, which the Company expects to realize before the end of 2009.

For the first nine months of 2009, the Company reported income from continuing operations of $18.7 million, or $2.10 per diluted share, on total contract revenues of $339 million, compared with income from continuing operations of $20.6 million, or $2.32 per diluted share, on total contract revenues of $341 million in the first nine months of 2008.

The full-year forecasted effective income tax rate from continuing operations was 38.0 percent and 39.0 percent at September 30, 2009 and 2008, respectively.

Commenting on the results, President and Chief Executive Officer Bradley L. Mallory said, "It is never easy to achieve the clarity of focus necessary to ensure the continued success of a strong and viable core business, but with the recent sale of our Energy segment, we have done just that. These financial results partially mask this overarching truth. Our core Engineering business has been solidly profitable, and we expect continued growth in profitability going forward, despite the slight flattening of revenues resulting from the changing nature of our work for FEMA."

Michael Baker Corporation provides architecture, engineering and construction services for its clients' most complex challenges worldwide. The firm's primary business areas are aviation, defense, environmental, facilities, geospatial, homeland security, municipal & civil, pipelines & utilities, transportation and water. With more than 2,300 employees in over 40 offices across the United States, Baker is focused on creating value by delivering innovative and sustainable solutions for infrastructure and the environment.

Conference Call

Michael Baker Corporation has scheduled a conference call and webcast for Tuesday, November 10, at 10:00 a.m. EST, to discuss the third quarter and first nine months' results. Please call 800-860-2442 at least 10 minutes prior to the start of the call. To access the webcast, please visit the investor relations portion of Baker's website at www.mbakercorp.com

(The above information contains forward-looking statements concerning our future operations and performance. Forward-looking statements are subject to market, operating and economic risks and uncertainties that may cause our actual results in future periods to be materially different from any future performance suggested herein. Factors that may cause such differences include, among others: increased competition; increased costs; changes in general market conditions; changes in industry trends; changes in the regulatory environment; changes in our relationship and/or contracts with the Federal Emergency Management Agency ("FEMA"); changes in anticipated levels of government spending on infrastructure, including the Safe, Accountable, Flexible, Efficient Transportation Equity Act”A Legacy for Users ("SAFETEA-LU"); changes in loan relationships or sources of financing; changes in management; changes in information systems; late SEC filings; and, the restatement of financial results. Such forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.)

 FINANCIAL SUMMARY                                                                                                    
 (Unaudited)                                                                                                          
                                                        For the three months       For the nine months                
 Operating Results                                      ended September 30,        ended September 30,                
 (In thousands, except earnings per share)              2009          2008         2009               2008            
                                                                                                                      
                                                                                                                      
 Revenues                                               $  110,153    $  119,155   $  338,560         $  341,317      
                                                                                                                      
 Gross profit                                              22,239        23,788       67,605             68,456       
                                                                                                                      
 Operating income                                          7,523         10,201       23,648             30,923       
                                                                                                                      
 Income before income taxes                                10,919        11,317       30,129             33,799       
                                                                                                                      
 Income from continuing operations                         6,962         6,903        18,680             20,617       
                                                                                                                      
 Income from discontinued operations                       355           4,900        3,622              5,649        
                                                                                                                      
 Net income attributable to Michael Baker Corporation   $  7,278      $  11,793    $  22,166          $  26,166       
                                                                                                                      
 Weighted average shares outstanding:                                                                                 
  Basic                                                    8,859         8,812        8,849              8,805        
  Diluted                                                  8,939         8,898        8,928              8,887        
                                                                                                                      
 Earnings per share:                                                                                                  
  Basic-continuing operations                           $  0.78       $  0.78      $  2.12            $  2.34         
  Diluted-continuing operation                             0.78          0.78         2.10               2.32         
  Basic-net income                                         0.82          1.34         2.51               2.97         
  Diluted-net income                                    $  0.81       $  1.33      $  2.48            $  2.94         
                                                                                                                      
                                                                                                                      
 Backlog                                                                           As of                              
 (In millions)                                                                     September 30,      December 31,    
                                                                                   2009               2008            
                                                                                                                      
 Funded                                                                            $  437.7           $  449.5        
 Unfunded                                                                             991.4              534.7        
 Total                                                                             $  1,429.1         $  984.2        
                                                                                                                      
                                                                                                                      
 Condensed Balance Sheet                                                           As of                              
 (In thousands)                                                                    September 30,      December 31,    
                                                                                   2009               2008            
 ASSETS                                                                                                               
 Cash and cash equivalents                                                         $  73,361          $  49,050       
 Proceeds receivable - Energy sale                                                    47,234             -            
 Receivables, net                                                                     64,847             113,676      
 Unbilled revenues on contracts in progress                                           52,238             70,455       
 Prepaid expenses and other                                                           14,796             16,756       
  Total current assets                                                                252,476            249,937      
                                                                                                                      
 Property, plant and equipment, net                                                   13,201             16,671       
 Goodwill and other intangible assets, net                                            9,723              17,254       
 Other long-term assets                                                               6,792              8,200        
  Total assets                                                                     $  282,192         $  292,062      
                                                                                                                      
 LIABILITIES & SHAREHOLDERS' INVESTMENT                                                                               
 Accounts payable                                                                  $  31,460          $  42,421       
 Accrued compensation and insurance                                                   38,435             47,162       
 Other accrued expenses                                                               18,859             28,696       
 Billings in excess of revenues on contracts in progress                              16,355             17,449       
  Total current liabilities                                                           105,109            135,728      
                                                                                                                      
                                                                                                                      
 Other long-term liabilities                                                          8,586              13,418       
  Total liabilities                                                                   113,695            149,146      
                                                                                                                      
                                                                                                                      
 Common Stock                                                                         9,389              9,351        
 Additional paid-in capital                                                           49,426             48,405       
 Retained earnings                                                                    114,380            92,214       
 Accumulated other comprehensive loss                                                 (306        )      (2,565     ) 
 Less - Treasury shares                                                               (4,761      )      (4,761     ) 
  Total Michael Baker Corporation shareholders' investment                            168,128            142,644      
 Noncontrolling interests                                                             369                272          
  Total shareholders' investment                                                      168,497            142,916      
  Total liabilities & shareholders' investment                                     $  282,192         $  292,062      


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