KSW, Inc. (NASDAQ GM:KSW) today announced that the luxury residential/hotel project to be built on 42^nd Street and 10^th Avenue is proceeding, subject only to the formal execution of the already negotiated Project Labor Agreement (PLA), and that KSW Mechanical Services, Inc. has been awarded the HVAC contract. This project had previously been awarded to the Company but was placed on hold in December 2008 as a result of economic conditions.

Since that time, the Company, the professional design team and the construction trade unions have worked diligently, through value engineering, design changes and labor concessions, to reduce costs. KSW’s re-award of this prestigious project is a culmination of those efforts.

The new contract, valued between $25.75 million and $27.25 million (depending on the acceptance of certain alternates), was not included in the Company’s backlog as of July 30, 2009.

The project, whose foundations are already in place, will start immediately and is anticipated to be completed by the end of 2011.

About KSW

KSW, Inc., through its totally-owned mechanical subsidiary KSW Mechanical Services, Inc., furnishes and installs heating, ventilating and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects. KSW Mechanical Services, Inc. also acts as trade manager on larger construction projects, such as New York Presbyterian Cardiovascular Center.

Safe Harbor Statement

Certain statements contained in this press release are not historical facts, and constitute “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward looking statements generally can be identified as statements that include phrases such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “likely”, “should”, “will” or other similar words or phrases. Such forward-looking statements concerning management’s expectations and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations of the Company include, among others, the outcome of the year end audit, and further internal review of the Company’s historical financial statements. All written and oral forward-looking statements of or attributable to the Company or persons acting on behalf of the Company are qualified in their entirety by such factors. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based.

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