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M ICHAEL B AKER C ORPORATION

2001. M ICHAEL B AKER C ORPORATION. Investor Relations Presentation. e ngineering. and. e nergy. solutions. Safe Harbor.

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M ICHAEL B AKER C ORPORATION

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  1. 2001 MICHAEL BAKER CORPORATION Investor Relations Presentation e ngineering and e nergy solutions

  2. Safe Harbor This presentation will contain information related to events which may occur in the future. These forward-looking statements may include future business trends, revenue and earnings forecasts, and acquisition and corporate finance activity. These statements are subject to market, operating and other risks and uncertainties and, as a result, actual results may vary. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

  3. Summary / Highlights • Leader in Professional Services • Oil & Gas Production O&M • Transportation and Civil Infrastructure Engineering • Positioned to Accelerate Margin Growth, Led by Energy Segment • Focused on Two Segments with New Management Team in Place • Recognized Expertise in Transportation, Pipeline and Power Generation Markets • Under-followed Micro Cap Valued at 4x EBITDA

  4. Decade of Performance

  5. Core Energy Service Offerings • Oil & Gas • Operations & Maintenance • Competency-Based Training • Operations Engineering • Supply Chain Management • Power • Operations & Maintenance • New Equipment Installation • Outage Planning/Overhauls • Engineering / Start-up Assistance

  6. Differentiation of Services • Energy • Integrated Services and Solutions for Global O&G Upstream Production Operations • Competency-Based Training and Nationalization Programs • OPCOSM

  7. Idea Explore Construct Develop Produce Monetize OPCOSM OPCO Integrated Decision-making in Production Operations Management Operations Network Growth Maintenance OPCO Supply Chain Management HS&E Production Operations Functions and Critical Decisions Training & Development Human Resources

  8. Growth Drivers Outsourcing Trends GOM 10% GOM Outsourced O&M Market $4 bil. Total GOM Market International ?% Int’l. Outsourced O&M Market $? bil. Total Int’l. Market

  9. Growth Drivers • Energy • Outsourcing and Industry Growth Commitments of Major and Independent Oil and Gas Producers • Political and Economic Requirements to Develop Nationalized Workforce • Favorable Environment for Fossil Fuel Sources • Bush Administration Energy Proposal • Deregulation of Electric Power Industry

  10. Energy Growth Drivers Fixed Fee Income Annual Performance Bonus Sharing Cost Savings Baker VALUE CREATION SHARED SAVINGS LEVERAGED ECONOMIES of SCALE OPCOSM Client Reduced Operating Costs Increased Revenues Increased Efficiency

  11. Our Potential Market

  12. Our Served Market

  13. OPCOSM Top Producers in the GOM OPCO Total Operated Production

  14. eOPS • Fully-Integrated, Operations and Maintenance System for Upstream Energy Industry • Alliance: • Baker - Content • SAIC - Technology, Telecom and Knowledge Management • Deloitte - Planning, Strategy and Analysis • Global Market - $160 Billion • Benefits • Shortened Cycle Time • Improved Operating Performance • Lower Cost of Operation • Greater Asset Return

  15. Energy - Recent Contracts CLIENT INITIAL TERM INITIAL CV Chevron (Thailand) 5 YR. $25m Burlington Resources 3 YR. $60m El Paso Production 3 YR. $64m Nigeria LNG Limited 3 YR. $10m BP (Various) $5m Magnum Hunter >$1m Panaco >$1m EnerVest >$1m Mitsubishi Heavy Industries Sonatrach

  16. Core Engineering Service Offerings • Transportation Engineering Services • Highways • Bridges (Structures) • Airports • Civil InfrastructureServices • Cold Region Pipelines • Water/Waste Water • Power / Utilities

  17. Alignment of Services • Engineering • Large Infrastructure • Design Market Presence • 17th Transportation • 19th Highways • 12th Bridges • 23rd Airports

  18. Growth Drivers Transportation: TEA-21 3rd 9th 4th 11th 7th 8th 12th 35th 1st 10th 29th 6th 23rd 2nd 5th 22nd Ranking TEA-21 Funded States Baker Office Source: Projected TEA-21 Apportionments 1998-2003, ENR (08/00)

  19. Growth Drivers Transportation: TEA-21 Total Federal Authorizations Source: Federal Highway Administrations, U.S. Department of Transportation

  20. 4th 5th 8th 34th 1st 6th 13th 7th 2nd Growth Drivers Transportation: AIR-21 10th (Tied) 10th (Tied) 14th 18th 9th 3rd Ranking AIR-21 Funded States Baker Office Source: Annual Airport Grant Entitlement Funds, ENR (08/00)

  21. Growth Drivers Transportation: AIR-21 AIR-21 Conference Agreement Funding Levels ‘01-’03Compared to FY 2000 Enacted Level ($ in billions) Source: U.S. Department of Transportation

  22. Growth Drivers Oil & Gas Pipelines • Cold Regions Expertise • Trans-Alaska Pipeline • Alpine Extension - Colville River • Sakhalin Island • Alas-Can Project

  23. Competitive Barriers to Entry • Energy • Customer Relationships • Content and Information Delivery Systems • Implementation/Delivery Capability • OPCO Network • Engineering • Alignment of Services to Meet Customer Needs • Long-Term Relationships

  24. Key Customer Relationships • Energy • Engineering

  25. “Blur the Segments” O&M Alaska Engineering Design GIS Database --Facilities Management Aberdeen CMMS Implementation O&M Nigeria Environmental Assessmentand Design

  26. Acquisition Growth Opportunities • Geographic and Capacity Expansion • Energy Opportunities • Engineering Opportunities • Additional Capabilities • Energy • Training Program Development • Maintenance Management Systems • Engineering • Power • Water/Wastewater • Asset Management

  27. Total Revenues Energy

  28. Revenues Q1/Q1 Total Reported/Engineering/Energy Revenues $35.1 $25.6 $19.3 $57.6 $57.0 $43.6 Energy

  29. Operating Performance(in Thousands of $) 5,471 Adjusted for $1 Million Non-Recurring Charge

  30. Operating Performance (Q1/Q1)(in Thousands of $)

  31. Cash Flow(in millions of $)

  32. Balance Sheet(in millions of $)

  33. EPS Growth 2001 Estimate: $1.25 - $1.30

  34. Ownership Holders Shares Baker ESOP 3,420,821Goldman Sachs Asset Management 720,900 Lord, Abbett & Co. 525,200 Dimensional Fund Advisors Inc. 478,214 Seacor Smit, Inc. 340,000 Management/Insiders 296,445 Pennsylvania Public School ERS 236,400 Corbyn Investment Management 141,600

  35. Conclusion • Leader in: • Oil & Gas Production O&M • Transportation and Civil Infrastructure Engineering • Energy Market Conditions Catalyst for Significant Growth • Investment in Transportation Infrastructure Providing Substantial Opportunity • Debt-free, Leverageable Balance Sheet • Under-followed Micro Cap Valued at 4x EBITDA

  36. 2001 MICHAEL BAKER CORPORATION Investor Relations Presentation e ngineering and e nergy solutions

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