Welcome to the major leagues of debt. Collateralized debt obligations, almost always referred to as a CDOs, are horrendously complicated deals that often leave anyone without a MBA wondering what was put into these CDOs.

The first thing to understand about bonds, (aka debt) is that bonds are often backed by something else. Think about your home mortgage. If you don't pay your mortgage, the bank can take the house. You end up homeless, and the bank sells the house to pay off the rest of that mortgage. There is something "backing" that mortgage; something lender can fall back on, if you don't pay your bills like a good human being. That's called collateral.

CDOs are one flavor of an entire sector of investing called structured finance, and they are also backed. CDOs, in the simplest concept, are just bonds backed by something else. In most cases, a CDO is backed by a collection of various types of debt. CDOs can be home mortgages, or other types of debt like credit cards, auto loans, and personal loans. Most of these types of debt are usually considered a bit more risky and they don't have the backing that a home loan does. So, if you think it through, you can imagine that CDOs are usually considered a risky investment.

To take a step further, understand that CDOs have multiple flavors within each CDO. These flavors are called tranches. If you've taken French, you might recognize the word, it means "slice" or "portion." Each slice of that CDO you invest in is a little different and carries different amounts of risk.

You could invest in the lowest risk tranche of the CDO, which would provide you lower risk. But, you don't get a good return on that investment. Or, you can be the heroic adventurer of bonds and invest in the lowest-grade tranche of the CDO. You'll make an amazing return, but if the economy even looks at you wrong, you might lose the entire investment.

CDOs aren¿t easy, and are almost always invested in by mutual funds, insurance companies and hedge funds. As an individual investor, you will probably not come across a CDO you can participate in.

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Thursday, July 24, 2008

EMCOR Group, Inc. Subsidiary Receives Contract for Mechanical Systems Work at the University of Miami School of Medicine

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NORWALK, Conn., Jul 24, 2008 (BUSINESS WIRE) ----EMCOR Group, Inc. (NYSE: EME), a Fortune 500(R) leader in mechanical and electrical construction, energy infrastructure and facilities services for a diverse range of businesses, announced that its Poole and Kent Company of Florida subsidiary has been awarded a mechanical construction contract by the University of Miami School of Medicine campus in Miami, Florida.

Poole and Kent will install a piping system that will provide 17,000 tons of chilled water to various buildings on the University's School of Medicine campus. The project will involve 7,200 feet of up to 36-inch underground, insulated piping, as well as all system valves and fittings. The scope of work will include pipe identification and markers; cleaning and flushing of the new pipe system; all excavation, backfill and pipe bleeding; cold patching, road plates and sidewalk concrete; roadway restoration, paving and curbs; milling resurfacing of asphalt; storm sewer protection and pavement marking; concrete topping of CHW lines; and additional work for the chiller plant connection.

"Poole and Kent has been working with the University of Miami for over 30 years and we're excited to continue that relationship through this important project---a chilled water distribution system that will provide added capacity to the Medical School for expansion and energy conservation," said Steven C. Jordan, President and CEO of Poole and Kent Company of Florida.

About EMCOR Group, Inc.

A Fortune 500 company with estimated 2008 revenues of $6.8 - $7.0 billion, EMCOR Group, Inc. (NYSE: EME) is a global leader in mechanical and electrical construction, energy infrastructure, and facilities services. EMCOR gives life to new structures and sustains life in existing ones by its planning, installing, operating and maintaining the sophisticated and dynamic systems that create facility environments---such as electrical, mechanical, lighting, air conditioning, heating, security and power generation systems---in virtually every sector of the economy and for a diverse range of businesses around the world. EMCOR represents a rare combination of reach with local execution, combining the strength of an industry leader with the knowledge and care of 170 locations worldwide. The 30,000 skilled employees of EMCOR have made the company, in the eyes of leading business publications, amongst America's "Most Admired" and "Best Performing." EMCOR's diversity---in terms of the services it provides, the industries it serves and the geography it spans---has enabled it to create a stable platform for sustained results. The Company's strong financial position has enabled it to attract and retain among the best local and regional talent, to undertake and complete the most ambitious projects, and to redefine and shape the future of the construction and facilities services industry. Additional information on EMCOR can be found at www.EMCORGroup.com.

This release may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management's perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, project mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR's services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity, mix of business, and risks associated with foreign operations. Certain of the risks and factors associated with EMCOR's business are also discussed in the Company's 2007 Form 10-K, its Form 10-Q for the first quarter ended March 31, 2008, and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.

SOURCE: EMCOR Group, Inc.

EMCOR
   Group, Inc. Mava Heffler, 203-849-7814 Vice President, Marketing & Communications or Linden Alschuler & Kaplan, Inc.
   Suzanne Dawson/Cecile Fradkin, 212-575-4545

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