CONTRACT AWARDED FOR CONSTRUCTION OF NEW STC DEPOT

Saskatchewan Transportation Company (STC) President and CEO Ray Clayton announced today that Westridge Construction Ltd. of Regina has been awarded the contract for construction of a new STC passenger and freight terminal and head office building in Regina.

"The Westridge bid was the lowest of three bids we received, and it meets all STC's preconditions," Clayton said. "Westridge will begin work on the site on October 16th and completion of the building is slated for January 15th, 2008."

The budget for the entire project, including land assembly, utility relocation and equipment, stands at $25.5 million.

"Due to market forces, the budget has increased approximately 34 per cent since the final building design was approved 11 months ago," Clayton said. "There has been no change in design or concept. The increased cost reflects the over-heated nature of the construction industry in Western Canada."

Brian Saunders, Managing Partner of Saunders Evans Architects of Regina, STC's architect and project co-ordinator, said the budget increase is not unexpected in the current economy.

"The current construction boom in Western Canada has seen a substantial increase in construction, materials and labour," Saunders said. "The cost of structural steel, concrete, copper and other construction supplies has increased recently."

"All the reasons why a new Regina facility is needed are still valid, and the design is still the same, aimed at optimum functionality, comfort and safety for our customers," Clayton said.

-30-

For More Information, Contact:

John Millar STC Regina Phone: (306) 787-3660 Email: jmillar@stcbus.com