Granite Construction awarded $420 Mln DB Project

Watsonville, California, United States of America – Granite Construction Incorporated (NYSE: GVA) announced that Granite Construction Company, a wholly-owned subsidiary, in joint venture with Fred Weber, Inc. and Millstone-Bangert, Inc., has been awarded a $420 million contract by the Missouri Highways and Transportation Commission for the reconstruction of Interstate 64 ("I-64") in St. Louis, Missouri. Granite’s portion of the contract is 50% of the construction budget, or approximately $210 million.

The Granite-led Gateway Constructors team also includes Parsons Transportation Group and URS Corporation. The project, which will reconstruct approximately nine miles of I-64 from west of Spoede Road to east of Kingshighway Boulevard, is the first Design-Build contract for the Missouri Department of Transportation.

Scope of the project includes construction of a freeway-to-freeway interchange connecting Interstate 170 ("I-I70") with I-64, removal and replacement of the roadway, as well as the complete reconstruction of 29 bridges and 12 interchanges. One lane will be added in each direction from west of Spoede Road to I-170.

Gateway Constructors construction schedule consists of three phases beginning in the spring of 2007 when the I-170/I-64 interchange construction will begin. The project is estimated to be completed by July 31, 2010. For specific construction schedule information, please visit the project website at www.thenewi64.org.

Granite Construction Incorporated is a member of the S&P 400 Index, the Domini 400 Social Index and is the parent company of Granite Construction Company, one of the nation’s largest heavy civil contractors and construction materials producers. Granite Construction Company serves both public and private sector clients through its offices nationwide. For more information about Granite, please visit its website at www.graniteconstruction.com.