PASADENA, Calif.–(BUSINESS WIRE)–

Tetra Tech, Inc. (TTEK) announced today an update of its third
quarter 2013 outlook to reflect increased restructuring costs resulting
from the previously announced weakness in Eastern Canada and mining, and
new findings on certain project claims.

Tetra Tech plans to incur restructuring costs associated with its
Eastern Canadian and mining operations in the third quarter 2013. These
costs are now estimated to be approximately $50 million in the third
quarter, approximately $40 million of which are non-recurring. This
increase is principally related to increased severance and office
closure costs to downsize these operations due to reduced project demand
caused by poor economic conditions. Approximately two-thirds of these
costs are associated with Eastern Canada, and approximately one-third
are associated with mining operations. Based upon these anticipated
results, Tetra Tech is performing a goodwill impairment test on its
Eastern Canadian and mining operations, and will update investors on the
test results in the third quarter earnings release.

In addition, Tetra Tech plans to incur charges to resolve certain
project claims in its third quarter. During the quarter, Tetra Tech
received adverse findings principally related to claims on four
programs, and will consequently record a charge while it continues the
dispute resolution processes. The claims are primarily related to change
orders on lump-sum projects for certain U.S. federal and state
government customers that are currently under significant budget
pressure. These charges are estimated to be up to $45 million, most of
which are associated with accounts receivable.

The charges will affect the revenue and profitability of all three
reportable segments. In the third quarter, revenue, net of subcontractor
costs, is now expected to range from $440 million to $490 million, and,
based on these charges, diluted loss per share is expected to range from
$0.30 to $0.50.

In addition, Tetra Tech’s Board of Directors has authorized the
repurchase of up to $100 million of its common stock. Because the
repurchases under the program are subject to certain pricing parameters,
there is no guarantee as to the exact number of shares that will be
repurchased under the program, or that there will be any repurchases
pursuant to the program.

“The actions we are taking in the third quarter proactively address
changes in the market and right-size our operations to immediately
return the Company to its historical profitability and trend of margin
improvement,” said Dan Batrack, Tetra Tech’s Chairman and CEO. “The
Board’s stock repurchase authorization reflects confidence in our
long-term outlook by enabling us to purchase shares at times when we
believe they trade at a significant discount to their intrinsic value.
The stock repurchase program will not impact our ability to invest in
both organic growth initiatives and strategic acquisitions.”

About Tetra Tech (www.tetratech.com)

Tetra Tech is a leading provider of consulting, engineering, program
management, construction management, and technical services. The Company
supports government and commercial clients by providing innovative
solutions to complex problems focused on water, environment, energy,
infrastructure, and natural resources. With more than 14,000 staff
worldwide, Tetra Tech’s capabilities span the entire project life cycle.

Forward-Looking Statements

This news release contains forward-looking statements that are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
information concerning future events and the future financial
performance of Tetra Tech that involve risks and uncertainties. Readers
are cautioned that these forward-looking statements are only predictions
and may differ materially from actual future events or results. Readers
are urged to read the documents filed by Tetra Tech with the SEC,
specifically the most recent reports on Form 10-K, 10-Q, and 8-K, each
as it may be amended from time to time, which identify risk factors that
could cause actual results to differ materially from the forward-looking
statements. Among the important factors or risks that could cause actual
results or events to differ materially from those in the forward-looking
statements in this release are:
worldwide political and economic
uncertainties; the effect of the Budget Control Act of 2011;
fluctuations in annual revenue, expenses and operating results; the
cyclicality in demand for U.S. state and local government and U.S.
commercial services; credit risks associated with certain U.S.
commercial clients; concentration of revenues from U.S. government
agencies and potential funding disruptions by these agencies; violations
of U.S. government contractor regulations; dependence on winning or
renewing U.S. federal, state and local government contracts; the delay
or unavailability of public funding on U.S. government contracts; the
U.S. government’s right to modify, delay, curtail or terminate contracts
at its convenience; risks associated with international operations; the
failure to properly manage projects; the loss of key personnel or the
inability to attract and retain qualified personnel; the use of
estimates and assumptions in the preparation of financial statements;
the ability to maintain adequate workforce utilization; the use of the
percentage-of-completion method of accounting; the inability to
accurately estimate contract risks, revenue and costs; the failure to
win or renew contracts with private and public sector clients;
acquisition strategy and integration risks; goodwill or other intangible
asset impairment; growth strategy management; backlog cancellation and
adjustments; the failure of partners to perform on joint projects; the
failure of subcontractors to satisfy their obligations; requirements to
pay liquidated damages based on contract performance; changes in
resource management, environmental or infrastructure industry laws,
regulations or programs; changes in capital markets and the access to
capital; credit agreement covenants; industry competition; liability
related to legal proceedings; the availability of third-party insurance
coverage; the ability to obtain adequate bonding; employee, agent or
partner misconduct; employee risks related to international travel;
safety programs; conflict of interest issues; liabilities relating to
reports and opinions; liabilities relating to environmental laws and
regulations; force majeure events; protection of intellectual property
rights; the interruption of computer, information and communications
technology and systems; the ability to impede a business combination
based on Delaware law and charter documents; and stock price volatility.
Any projections in this release are based on limited information
currently available to Tetra Tech, which is subject to change. Although
any such projections and the factors influencing them will likely
change, Tetra Tech will not necessarily update the information, since
Tetra Tech will only provide guidance at certain points during the year.
Readers should not place undue reliance on forward-looking statements
since such information speaks only as of the date of this release.