Global Insight projects an 8.0% annual growth rate in global infrastructure spending from 2005 to 2010 and a 6.7% annual growth rate in the United States over the same period. According to the U.S. Census Bureau News published by the U.S. Department of Commerce in January 2007, U.S. highway and street construction spending in 2006 was approximately $75 billion, an increase of approximately $10 billion over spending in 2005. Recent growth in the U.S. transportation market is partly attributable to the current federal-aid highway bill, Safe, Accountable, Flexible and Efficient Transportation Equity Act-A Legacy for Users (SAFETEA-LU).

International infrastructure spending is also rising as certain regions, including China, India, Russia and Eastern Europe develop the infrastructure necessary to support increased industrialization. According to Global Insight, the 2005 to 2010 compound annual growth rates for infrastructure spending in China, India, Russia and Eastern Europe are projected to be 15.4%, 9.4%, 14.3% and 12.7%, respectively.

According to The American Road and Transportation Builders Association, from 2004 through 2006, prices for ready mix concrete, sand and gravel, and iron and steel increased 30%, 21% and 42%, respectively. These price increases contributed to a 31% rise in overall highway construction costs from 2004 through 2006, putting severe pressure on highway department budgets and spending. Moreover, the U.S. Geological Survey notes that the crushed stone and construction sand and gravel industries continue to be concerned with environmental, health, and safety regulations and this trend, combined with local zoning regulations that discourage new quarries, is expected to result in continued shortages of these materials in industrialized and urban areas. As a consequence of this, the U.S. Geological Survey reports that crushed stone aggregate prices in the United States have increased from $5.71 per metric ton in 2002 to $7.76 per metric ton in 2006.

Uniaxial geogrids are structural geogrids with oblong apertures manufactured from high density polyethylene that are developed to have load bearing strength in one direction and are particularly well suited to demanding structural applications in which sustained loads will be experienced in one direction, such as retaining walls.

Biaxial geogrids are structural geogrids with square or rectangular apertures and triaxial geogrids are structural geogrids with triangular apertures. Biaxial and triaxial geogrids are manufactured from polypropylene and are developed to have load bearing strength, in the case of biaxial geogrids, in two directions and, in the case of triaxial geogrids, in three directions.

Environmental Site Solutions, or ESS, develops and manufactures products used to provide erosion and sediment control and promote vegetation growth after construction. ESS’s principal products are degradable erosion control blankets, permanent composite turf reinforcement mats, hydraulically applied high-performance cotton fiber mulches and lightweight oriented net.

Foundation Improvement Solutions, or FIS, is a licensor of proprietary foundation support technologies used in the construction of new structures on sites with weak or soft soil conditions to its licensed installers in North and South America. FIS’s technologies are based on proprietary methods of constructing intermediate-depth, aggregate-pier foundation systems. FIS’s principal products are Rammed Aggregate Pier elements.

Rammed Aggregate Pier elements are an efficient and cost effective foundation support solution for structures in settlement prone areas. A conventional foundation structure consists of a deep concrete or steel pile system beneath the structure. As an alternative, Rammed Aggregate Pier elements are constructed by densely compacting successive thin lifts of high quality crushed rock in a 2 to 3 foot cavity of varying depth using a proprietary method and equipment.

Gross profit increased $20.5 million or 60.5% from $33.9 million for the six months ended June 30, 2006 to $54.4 million for the six months ended June 30, 2007.

Selling and marketing expenses increased $8.1 million or 74.9% from $10.8 million for the six months ended June 30, 2006 to $18.9 million for the six months ended June 30, 2007.

Research and development expenses increased $0.7 million or 99.8% from $0.7 million for the six months ended June 30, 2006 to $1.4 million for the six months ended June 30, 2007.

Interest expense, net increased $6.2 million or 37.7% from $16.3 million for the six months ended June 30, 2006 to $22.5 million for the six months ended June 30, 2007.