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       Our commitment to the health and safety of our employees, the communities in which we work, and to
       sustainable development is one of our key values. It incorporates measures to ensure sustainability in all
       aspects of our business – including ongoing commitments to recruiting and maintaining a highly skilled
       workforce, and to ensuring we leave a positive legacy behind, once a project is completed.

       IN 2004, SOME OF THOSE SUSTAINABLE MEASURES INCLUDED                   and SNC-Lavalin ProFac won two environment-related awards
         Developing community roads, a bridge, sewage treatment               from industry in the province of Ontario.
       facilities, school health education and HIV/AIDS programs
       in South Africa; helping a community in Bosnia build a school          OTHER KEY DEVELOPMENTS IN 2004 IN SUPPORT
       in the neighbourhood where we provided communications’                 OF HSE AND SUSTAINABILITY
       logistics for NATO Peacekeepers; providing training in project            Our Environmental Management Plan for construction
       management, proposals and environment management in                    sites is customized to meet the individual needs of projects
       countries like China and Vietnam; continuing to build on our
                                                                              worldwide. It is a key tool to efficiently and effectively
       historic relationships with aboriginal communities to identify
                                                                              monitor compliance to environmental standards. Signing
       and develop opportunities; and supporting Habitat for
                                                                              on to SNC-Lavalin’s Environmental Policy is a requirement
       Humanity by sponsoring a house for a low income family in
       Toronto – just one of our many community-related initiatives           for every project manager.
       where employees contribute time and money to programs                     SNC-Lavalin’s Environmental team participates in the envi-
       and projects that improve the lives of others.                         ronmental assessment of projects in a wide range of countries,
                                                                              including, in 2004, Malaysia, Guinea, Peru, Algeria, Kuwait
       HEALTH & SAFETY, AND THE ENVIRONMENT— A PROGRESS REPORT                and the UAE to help meet comprehensive environmental
       A Zero Harm work environment is our objective
                                                                              assessment requirements by export credit agencies such as
       A safe and healthy work environment is the responsibility of
                                                                              Export Development Canada.
       every employee, and our goal and commitment each year is
                                                                                 Ongoing and systematic audits on business units by
       zero harm to our employees, our clients and to the environment.
                                                                              SNC-Lavalin’s 23 Health & Safety professionals to confirm
       No accident or incident is acceptable. We measure our success
       using a number of indicators, such as our HSE construction-            HSE compliance.
       based Lost Time Injury Rate, which is calculated by multiplying           Development of new HSE software to formally incorporate
       the number of lost work days by 200,000 and then dividing that         HSE requirements directly into SNC-Lavalin’s worldwide
       by the total number of hours worked. This is closely monitored         PM+ project management procedures – thus facilitating injury
       by business unit leaders, the Company’s senior management,             and accident reporting.
       and the Board of Directors.
                                                                              TRAINING ACTIVITIES
         Our success in 2004 is reflected in a number of projects totalling
                                                                                SNC-Lavalin is committed to providing a trained Safety
       over 10 million man-hours worked without a Lost Time Injury
                                                                              Officer for every project site worldwide, and monthly HSE
       (LTI) on sites under the direction of our Mining and Metallurgy,
       Chemicals and Petroleum and Infrastructure business units in           reporting responsibilities for all projects are mandatory;
       Peru, Chile, Argentina, Oman, Libya, the United States and             training programs in 2004 provided a pool of 60 qualified
       Canada, among others. A number of these projects are ongoing,          Safety Officers to ensure all business units meet these
       and employees are now working on their 2nd and 3rd sets of             requirements; joint health and safety training best practices
       million man-hours worked without LTIs.                                 will be developed with our clients, suppliers and sub-
         Our success is also reflected in acknowledgements                    contractors; a new computer-based training program will
       received from clients and industry: SNC-Lavalin GDS                    be available later this year (2005) so that new Safety Officers’
       was honoured with five key safety achievement awards;                  can be trained, or updated, on site, anywhere in the world.

       Respect for Health & Safety, and the Environment is a commitment that goes beyond our working day.
       It is an integral part of each individual’s life.

                        FOR A BETTER WORLD
Printed in Canada

                        SNC-Lavalin is committed to providing safe and healthy work environments for all employees, in offices and on worksites
                        worldwide. We believe this commitment plays a key role in the success of our projects. Our ultimate goal is zero lost-time
                        incidents on every project.

                        SNC-Lavalin believes that sustainable development will improve the future for all people, and affirms that sound environ-
                        mental management is one of the pillars of a good project. SNC-Lavalin expects all employees – from the CEO down – to
                        share the responsibility of meeting our Environmental commitments to our clients and the communities in which we operate.

                                                                                                                            SNC-LAVALIN — 2004 ANNUAL REPORT

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