MasTec is a leading specialty contractor for utilities, independent power producers, pipeline owners, government entities, communications providers and water and sewer system owners throughout North America. MasTec designs, builds, installs, maintains and upgrades infrastructure that is the backbone of the nation's economy… utility and communications infrastructure, including electrical utility transmission and distribution, wind farm, solar farm and other renewable energy, natural gas infrastructure, water and sewer systems and wireless, wireline, and satellite communications.

For more than 75 years, MasTec and its predecessors have served the needs of our customers, kept pace with the deployment and maintenance of new technologies, and utilized the skills and intelligence of our more than 9,700 men and women in 200 locations to provide our customers with responsive and efficient services.

End Market Demand Drivers

Stimulus Bill. The American Recovery and Reinvestment Act of 2009, or the Stimulus Bill, signed on February 17, 2009, is having a positive impact on our customer spending in a number of important areas, and offers additional incentives that should benefit our business in the future. The Stimulus Bill provides for Federal tax incentives applicable to the renewable energy industry including the extension of the production tax credits, and a new, multi-year investment tax credit equal to 30% of the cost of certain qualifying assets that may be elected in lieu of the production tax credit. The Stimulus Bill also includes a new U.S. Treasury grant program which allows eligible taxpayers to receive grants from the U.S. Treasury equal to the amount of the investment tax credit in lieu of the tax credit.

Additionally, the Stimulus Bill contains several provisions aimed at improving the U.S.’s electrical transmission system in part to facilitate the transfer of renewable energy from rural areas to high demand areas, including $7 billion in funds for renewable energy and transmission loan guarantees, which are expected to facilitate more than $70 billion in loans for these projects. The Stimulus bill adds $11 billion for electrical grid upgrades and also provides for $7.2 billion in funds for the development of broadband facilities throughout the United States.

Environmental Sensitivity and Reducing Dependence on Foreign Oil. The desire to decrease the country’s dependence on foreign oil imports and the awareness of the potential effect of global warming have created demand for more domestic, environmentally sensitive electrical power production such as wind, geothermal and solar collection farms. According to the American Wind Energy Association, as of September 30, 2009, the United States had approximately 31,100 megawatts of installed wind farm generating capacity with approximately 5,000 megawatts under construction. In addition, 26 states in the United States and the District of Columbia have already adopted renewable portfolio standards or goals, which require or target that an average of 19% of electricity be produced from renewable sources. As a result of these trends, Emerging Energy Research, or EER, forecasted that more than $66 billion will be invested in additional wind energy capacity in the United States through 2013.

We believe that demand for new domestic sources of clean power generation and the related substations and transmission lines necessary to connect them to the electrical grid will provide significant growth prospects for the foreseeable future.

Inadequacy of Existing Electric Power Transmission and Distribution Networks. The United States’ electric transmission and distribution infrastructure requires significant ongoing maintenance, upgrades and extensions to manage power line congestion and avoid delivery failures. The Stimulus Bill provides for $11 billion in funds for the development of electrical grid modernization and smart grid upgrades throughout the United States. According to a November 2008 report published by the Edison Electric Institute, or EEI, the projected investment in new transmission systems from 2009 to 2013 is $27 billion and $298 billion for the period 2010 to 2030.

North American Electric Reliability Corporation, or NERC, projects the number of transmission miles will increase by 8.8% or 14,500 circuit miles in the U.S. over the next ten years. We believe spending levels will continue to increase as utilities work to address infrastructure maintenance requirements, as well as the future reliability standards required by the Energy Policy Act of 2005.

Increased Production and Demand for Natural Gas. Natural gas is one of the cleanest burning hydrocarbon fuels and is in demand due to its relative cost advantage over other fossil fuel sources. The supply of this domestic resource has increased dramatically in recent years with the continuing development of new shale gas deposits. The level of pipeline construction activity in the United States is expected to increase substantially through 2010. According to a report published in October 2009 by the U.S. Federal Energy Regulatory Commission, over 5,000 miles of pipeline projects, are pending.

Demand for Increased Wireless and Wired Voice, Video and Data Services. Demand for faster and more robust voice, video and data services has increased significantly with the proliferation of the Internet, broadband, video and music download services, high definition television and other advanced video services. To serve this developing market and the ever-increasing need for more bandwidth, voice, video and data for fixed and mobile devices, service providers are upgrading the performance of their wired and wireless networks or deploying new competing networks using new technologies such as Worldwide Interoperability for Microwave Access, or WiMax. The Stimulus Bill allocates $7.2 billion for the development of broadband facilities throughout the U.S. and the expansion of broadband access into areas that are currently not served by high-speed data networks.

Summary

Whether we are building new renewable energy generation capacity, building related electrical substations and transmission lines, deploying fiber optic cable, building pipelines, upgrading wireless and wired communications systems, installing satellite dishes, or rebuilding infrastructure systems after storms and hurricanes, we adhere to the principles that have sustained our growth. MasTec provides our customers with reliable and quality design, build, installation and maintenance services, while striving to deliver the highest possible return on investment to our shareholders.