Quanta Services Reports Fourth Quarter Results; Internal Revenue Growth of 25% for Fourth Quarter, 14% for 2005; EPS of $0.15 in Fourth Quarter 2005 vs. $0.02 in Fourth Quarter 2004

HOUSTON, Feb. 23 /PRNewswire-FirstCall/ -- Quanta Services, Inc. today announced results for the three and twelve months ended December 31, 2005.

Revenues in the fourth quarter of 2005 were $523.5 million, compared to revenues of $419.2 million in the fourth quarter of 2004. For the fourth quarter of 2005, net income was $18.5 million or earnings per diluted share of $0.15, compared to net income of $1.8 million or earnings per diluted share of $0.02 in the fourth quarter of 2004.

Revenues for the twelve months of 2005 were $1.86 billion, compared to $1.63 billion for the twelve months of 2004. For the twelve months of 2005, the company reported net income of $29.6 million, or earnings per diluted share of $0.25, compared to a net loss of $9.2 million, or a loss per diluted share of $0.08 for the year 2004.

"Our strong performance in the fourth quarter reflects our leading market position and our ability to quickly meet customer needs -- whether providing emergency response after a hurricane or partnering to deploy outsourcing strategies," said John Colson, chairman and chief executive officer of Quanta Services. "During 2005, we increased revenues, profits, margins, internal growth and backlog, quarter over quarter and year over year, and we therefore look forward to 2006 with enthusiasm."

RECENT HIGHLIGHTS - * Continued to Support Utilities in Restoration Efforts -- During the fourth quarter, Quanta deployed crews to help restore power and communications following Hurricane Wilma, the most intense hurricane of 2005. These crews were in addition to Quanta's workforce that remained in the Gulf Coast Region working to repair infrastructure in the areas affected by Hurricanes Dennis, Katrina and Rita. * Completed International Work -- Quanta recently completed a project in Africa utilizing its energized services technology. The six-month project involved the installation of a second 132,000-volt circuit while the existing transmission line remained energized. By utilizing Quanta's energized technology and avoiding the shutdown of an oilfield, the customer achieved significant savings. * Completion Nears on 90-mile, 765,000-volt Transmission Line -- At year end, Quanta had completed much of the work to construct the nation's first six-bundle conductor transmission line for American Electric Power (AEP). The new line, on schedule to be completed in the second quarter of 2006, includes 333 towers and 3,420 miles of wire and stretches from an AEP station at Oceana, W.Va., to the Jacksons Ferry Station east of Wytheville, Va. Energy demands in western Virginia and southern West Virginia have increased more than 135 percent since the last electric transmission line was built to serve the region in 1973. OUTLOOK

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Quanta expects revenues for the first quarter of 2006 to range from $440 million to $460 million, with net income per share of approximately $0.01 to $0.03.

Quanta Services has scheduled a conference call for February 24, 2006, at 9:30 a.m. Eastern time. To participate in the call, dial (303) 262-2191 at least 10 minutes before the conference call begins and ask for the Quanta Services conference call. Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting the company's web site at http://www.quantaservices.com/ . To listen to the live call on the web, please visit the Quanta Services web site at least fifteen minutes early to register, download and install any necessary audio software.

For those who cannot listen to the live web cast, an archive will be available shortly after the call on the company's web site at http://www.quantaservices.com/ . A replay will be available through March 3, 2006, and may be accessed by calling (303) 590-3000 and using the pass code 11053630. For more information, please contact Karen Roan at DRG&E by calling (713) 529-6600.

Quanta Services, Inc. is a leading provider of specialized contracting services, delivering end-to-end network solutions for electric power, gas, telecommunications and cable television industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide.

This press release contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to projected revenues and earnings per share and other financial and operating results, capital expenditures, growth in particular markets, benefits of the Energy Policy Act of 2005, strategies, expectations, intentions, plans, future events, performance, underlying assumptions, and other statements that do not relate strictly to historical or current facts. Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties, including, among others, quarterly variations in operating results; adverse changes in economic conditions in relevant markets; the ability to effectively compete for market share; beliefs and assumptions about the collectibility of receivables; the inability of customers to pay for services; the financial distress of Quanta's casualty insurance carrier that may require payment for losses that would otherwise be insured; liabilities for claims that are self-insured or for claims that Quanta's casualty insurance carrier fails to pay; potential liabilities relating to occupational health and safety matters; estimates relating to the use of percentage-of- completion accounting; dependence on fixed price contracts; rapid technological and structural changes that could reduce the demand for services; the ability to obtain performance bonds; cancellation provisions within contracts; the replacement of contracts as they are completed or expire; the ability to effectively integrate the operations of acquired businesses; retention of key personnel and qualified employees; the impact of a unionized workforce on operations and the ability to complete future acquisitions; growth outpacing infrastructure; risks associated with operating in international markets; potential exposure to environmental liabilities; requirements relating to governmental regulation; the ability to continue to meet the requirements of the Sarbanes-Oxley Act of 2002; the cost of borrowing, availability of credit, debt covenant compliance and other factors affecting financing activities; the ability to generate internal growth; the adverse impact of goodwill impairments; and the potential conversion of outstanding convertible subordinated notes. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward- looking statements, which are current only as of this date. Quanta does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's reports filed with the Securities and Exchange Commission.

- Tables to follow - Quanta Services, Inc. and Subsidiaries Consolidated Statements of Operations For the Three and Twelve Months Ended December 31, 2005 and 2004 (In thousands, except per share information) Three Months Ended Twelve Months Ended December 31, December 31, 2005 2004 2005 2004 (Unaudited) (Unaudited) Revenues $523,494 $419,242 $1,858,626 $1,626,510 Cost of services 436,827 369,341 1,601,878 1,445,119 Gross profit 86,667 49,901 256,748 181,391 Selling, general & administrative expenses 49,053 41,744 184,688 170,613 Net loss on sale of property & equipment 3,394 1,397 3,515 924 Income from operations 34,220 6,760 68,545 9,854 Interest expense (5,986) (6,094) (23,949) (25,067) Interest income 2,280 955 7,416 2,551 Other income (expense), net (89) 68 235 17 Income (loss) before taxes 30,425 1,689 52,247 (12,645) Provision (benefit) for taxes 11,963 (147) 22,690 (3,451) Net income (loss) $ 18,462 $1,836 $29,557 $(9,194) Basic earnings (loss) per share $0.16 $0.02 $0.26 $(0.08) Diluted earnings (loss) per share $0.15 (A) $0.02 $0.25 $(0.08) Shares used in computing earnings (loss) per share: Basic 116,099 (A) 114,731 115,756 114,441 Diluted 141,482 115,752 116,634 114,441 (A) As a result of applying the if-converted method for calculating diluted earnings per share, shares have been adjusted by an additional 24.2 million assuming conversion of Quanta's 4.5% convertible subordinated notes, and net income has been adjusted by $2.2 million for an addback of related interest expense, net of tax. Quanta Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) December 31, December 31, 2005 2004 ASSETS CURRENT ASSETS: Cash and cash equivalents $304,267 $265,560 Accounts receivable, net 431,584 348,828 Costs and estimated earnings in excess of billings on uncompleted contracts 38,053 42,092 Inventories 25,717 18,849 Prepaid expenses and other current assets 31,389 24,707 Total current assets 831,010 700,036 PROPERTY AND EQUIPMENT, net 286,606 314,983 ACCOUNTS AND NOTES RECEIVABLE, net 15,229 19,920 OTHER ASSETS, net 33,583 36,438 GOODWILL AND OTHER INTANGIBLES, net 388,357 388,620 Total assets $1,554,785 $1,459,997 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $2,252 $6,236 Accounts payable and accrued expenses 241,811 203,656 Billings in excess of costs and estimated earnings on uncompleted contracts 14,008 11,166 Total current liabilities 258,071 221,058 LONG-TERM DEBT, net of current maturities 7,591 21,863 CONVERTIBLE SUBORDINATED NOTES 442,500 442,500 DEFERRED INCOME TAXES AND OTHER NON- CURRENT LIABILITIES 142,885 111,329 Total liabilities 851,047 796,750 STOCKHOLDERS' EQUITY 703,738 663,247 Total liabilities and stockholders' equity $1,554,785 $1,459,997 Contacts: James Haddox, CFO Ken Dennard / ksdennard@drg-e.com Reba Reid Lisa Elliott / lelliott@drg-e.com Quanta Services, Inc. DRG&E 713-629-7600 713-529-6600

FCMN Contact: ksdennard@drg-e.com