Highlights Revenues for the year ended December 31, 1999 were $2.89 billion, compared to $2.21 billion and $1.95 billion for the years ended December 31, 1998 and 1997, respectively. Income before extraordinary items was $27.8 million for 1999, an increase of $10.8 million, or 63.2% from $17.1 million for 1998 and for 1997 income before extraordinary items was $8.6 million. Diluted earnings per share on income before extraordinary items were $2.21 per share for 1999, compared to $1.46 per share for 1998 and $0.84 per share for 1997. EMCOR’s increased results of operations for 1999 were attributed to companies acquired during 1997, 1998 and 1999, as well as the balance of EMCOR’s operations. Growth from the balance of EMCOR’s operations in 1999 resulted in a 9.4% increase in 1999 revenues compared to 1998.

Operating Segments EMCOR’s business consists of the following operating segments: United States electrical construction and facilities services, United States mechanical construction and facilities services, United States other services which consists primarily of operations that provide consulting and maintenance services, Canada construction and facilities services, United Kingdom construction and facilities services, and Other International. Other International represents the Company’s operations outside of the United States, Canada and the United Kingdom, primarily in the Middle East and Asia Pacific, performing electrical construction, mechanical construction and facilities services.

Results of Operations

Revenues Revenues for the year ended December 31, 1999 increased 30.9% to $2.89 billion, compared to $2.21 billion of revenues for 1998. The increase in revenues for 1999 compared to 1998 was attributable to $476.1 million of revenues from companies acquired during 1999 and 1998, and revenue growth from the balance of EMCOR's operations of $207.5 million. Revenues for 1998 of $2.21 billion represented a 13.3% increase over revenues of $1.95 billion for 1997. Companies acquired during 1998 accounted for approximately $65.0 million of the increase in 1998 revenues over 1997. The following table presents EMCOR's revenues by operating segment and the approximate percentage of total revenues for the years ended December 31, 1999, 1998 and 1997 (in thousands, except for percentages):