PRESS RELEASE

FOR IMMEDIATE RELEASE

05-10

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

QUANTA SERVICES REPORTS SECOND QUARTER RESULTS
Achieved 13% Internal Revenue Growth and Improved Margins

HOUSTON – August 4, 2005 – Quanta Services, Inc. (NYSE:PWR) today announced results for the three and six months ended June 30, 2005.

     Revenues in the second quarter of 2005 were $439.3 million compared to revenues of $389.2 million in the second quarter of 2004. For the second quarter of 2005, net income was $3.3 million, or $0.03 per diluted share, compared to a net loss of $3.5 million, or a loss per diluted share of $0.03 in the second quarter of 2004.

     Revenues for the first six months of 2005 were $811.8 million compared to $744.2 million for the first half of 2004. For the first six months of 2005, the company reported a net loss of $1.8 million or a loss per diluted share of $0.02, compared to a net loss of $15.2 million or a loss per diluted share of $0.13 in the first six months of last year.

     “Our backlog is at a record level due to steady improvement in both the electric power and telecommunications markets,” said John R. Colson, chairman and chief executive officer of Quanta Services. “We believe the increased spending by electric utilities is a result of their improved financial condition while increased telecommunications spending is being driven primarily by continued Fiber-to-the-Premises initiatives. As we look to future quarters, we expect the energy bill, as well as the trend toward increased outsourcing in the telecom and power industries, to contribute to continued optimism in both markets.”

– MORE –

OUTLOOK

     The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any business combinations or divestitures that may be completed after June 30, 2005.

     Quanta expects revenues for the third quarter of 2005 to range between $460 million to $490 million and diluted earnings per share to be between $0.06 and $0.08.

     Quanta Services has scheduled a conference call for August 4, 2005, at 9:30 a.m. eastern time. To participate in the call, dial (303) 262-2005 at least 10 minutes before the conference call begins and ask for the Quanta Services conference call. Investors, analysts and the general public also will have the opportunity to listen to the conference call over the Internet by visiting the company’s web site at www.quantaservices.com. To listen to the call live 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 website. A replay will also be available and may be accessed by calling (303) 590-3000 and using the pass code 11036506. 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 the 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, 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 due to seasonality and adverse weather conditions; 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 subsidiaries; 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; potential exposure to environmental liabilities; requirements relating to governmental regulation; the ability 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; and the adverse impact of goodwill impairments. 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 disclaims any intention or 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 Six Months Ended June 30, 2005 and 2004 (In thousands, except per share information) (Unaudited)

		Three Months Ended June 30,								Six Months Ended June 30,
		2005				2004				2005				2004
Revenues		$	439,287			$	389,194			$	811,792			$	744,191
Cost of services			385,471				342,853				721,884				671,126
Gross profit			53,816				46,341				89,908				73,065
Selling, general & administrative expenses			43,874				40,589				86,336				84,131
Income (loss) from operations			9,942				5,752				3,572				(11,066	)
Interest expense			(5,904	)			(6,228	)			(11,922	)			(12,594	)
Interest income			1,696				410				3,215				853
Other income (expense), net			97				(161	)			262				(131	)
Income (loss) before taxes			5,831				(227	)			(4,873	)			(22,938	)
Provision (benefit) for taxes			2,488				3,265				(3,088	)			(7,752	)
Net income (loss)		$	3,343			$	(3,492	)		$	(1,785	)		$	(15,186	)
Income (loss) per share:
Basic		$	0.03			$	(0.03	)		$	(0.02	)		$	(0.13	)
Diluted		$	0.03			$	(0.03	)		$	(0.02	)		$	(0.13	)
Shares used in computing income (loss) per share:
Basic			115,713				114,425				115,472				114,171
Diluted			116,341				114,425				115,472				114,171

		Quanta Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited)

		June 30,				December 31,
		2005				2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	240,737			$	265,560
Accounts receivable, net			363,074				348,828
Costs and estimated earnings in excess of billings on uncompleted contracts			57,755				42,092
Inventories			23,751				18,849
Prepaid expenses and other current assets			23,310				24,707
Total current assets			708,627				700,036
PROPERTY AND EQUIPMENT, net			313,222				314,983
ACCOUNTS AND NOTES RECEIVABLE, net			21,949				19,920
OTHER ASSETS, net			36,854				36,438
GOODWILL AND OTHER INTANGIBLES, net			388,489				388,620
Total assets		$	1,469,141			$	1,459,997
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt		$	1,838			$	6,236
Accounts payable and accrued expenses			218,998				203,656
Billings in excess of costs and estimated earnings on uncompleted contracts			12,057				11,166
Total current liabilities			232,893				221,058
LONG-TERM DEBT, net of current maturities			16,569				21,863
CONVERTIBLE SUBORDINATED NOTES			442,500				442,500
DEFERRED INCOME TAXES AND OTHER NON-CURRENT LIABILITIES			112,704				111,329
Total liabilities			804,666				796,750
STOCKHOLDERS’ EQUITY			664,475				663,247
Total liabilities and stockholders’ equity		$	1,469,141			$	1,459,997

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