Wilder Construction Company to Become Wholly Owned Subsidiary of Granite Construction

WATSONVILLE, Calif., Nov. 15 /PRNewswire-FirstCall/ -- GraniteConstruction Incorporated (NYSE: GVA) today announced that the minorityemployee-shareholders of Wilder Construction Company have approved the sale oftheir shares to Granite. Wilder is a Pacific Northwest-based heavy civilconstruction company in which Granite currently holds (through a subsidiary) a76.8% interest. Under the terms of the agreement, the minority shares ofWilder will be acquired for approximately $28 million in cash.

"We are extremely pleased to announce this transaction. Wilder is a verywell-managed company with a high quality team of people. We are proud of therelationship we have built with Wilder over the last eight years and areexcited about the long-term opportunities this merger creates for bothcompanies," said William G. Dorey, Granite President and Chief ExecutiveOfficer. "With a strong regional presence in Washington and Alaska, Wilderfits strategically within our geographic expansion plans. This merger, inconjunction with our acquisition of Superior early this year, is an example ofhow we intend to expand our vertically integrated business and advance ourstrategy of pursuing disciplined growth in Granite West."

These Wilder shares were subject to certain mandatory redemptionprovisions and the estimated redemption liability has been recorded as along-term liability in Granite’s consolidated financial statements. Foraccounting purposes, the excess of the amount to be paid for these minorityshares over the recorded liability will be recorded as a one-time charge ofapproximately $8.0 million, or $0.20 per diluted share. This charge will berecorded in the fourth quarter - the quarter in which the minorityemployee-shareholder approval condition was met and the close of thetransaction is anticipated to occur. The Company’s fiscal 2007 earningsguidance provided in its third quarter financial earnings release datedOctober 24, 2007 did not reflect this non-recurring charge.

After the merger becomes effective in early 2008, Wilder will become awholly owned subsidiary of Granite Construction Company and its operationswill function as two separate branches, the Northwest Washington Branch andthe Alaska Branch. In addition, Wilder’s Washington assets will be contributedto Granite Northwest (a wholly owned subsidiary of Granite ConstructionCompany) and the Alaska operations will be merged into Granite ConstructionCompany.

About Wilder

Founded in 1911, Wilder Construction Company is a heavy civil constructioncompany and construction materials producer with regional offices located inWashington and Alaska. The company has annual revenues of approximately$250 million. Wilder employs approximately 900 salaried and hourly peoplethroughout the Pacific Northwest and Alaska. The Company’s corporate office islocated in Everett, Washington.

About Granite

Granite Construction Incorporated is a member of the S&P 400 Midcap Index,the Domini 400 Social Index and the Russell 2000. Granite ConstructionCompany, a wholly owned subsidiary, is one of the nation’s largest diversifiedheavy civil contractors and construction materials producers. GraniteConstruction Company serves public and private sector clients through itsoffices and subsidiaries nationwide. For the 4th straight year, Granite wasnamed to FORTUNE’S List of 100 Best Companies to Work For. For moreinformation about Granite, please visit their website atwww.graniteconstruction.com.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaningof Section 27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange Act of 1934, as amended, which represents ourmanagement’s beliefs and assumptions concerning future events such asstatements related to the potential benefits of the Wilder merger.

All such forward-looking statements are subject to risks and uncertaintiesthat could cause actual results of operations and financial condition andother events, as well as the timing thereof, to differ materially from thoseexpressed or implied in such forward-looking statements. Specific risk factorsinclude, without limitation, changes in the composition of applicable federaland state legislation appropriation committees; federal and stateappropriation changes for infrastructure spending; the general state of theeconomy; job productivity; accuracy of project estimates; weather conditions;competition and pricing pressures; and state referendums and initiatives. Youshould not place undue reliance on these forward-looking statements, whichspeak only as of the date of this news release. You should also understandthat many important factors in addition to those discussed, referred to orincorporated by reference in this press release, could cause our results todiffer materially from those expressed in the forward-looking statements. Inlight of these risks and uncertainties, it is important to be aware that theforward-looking events discussed in this release may not occur. We undertakeno obligation to revise or update publicly any forward-looking statements toconform the statement to actual results or changes in the Company’sexpectations.

For further information regarding risks and uncertainties associated withGranite’s business, please refer to the "Management’s Discussion and Analysisof Financial Condition and Results of Operation" and "Risk Factors" sectionsof Granite’s SEC filings, including, but not limited to, its annual report onForm 10-K and quarterly reports on Form 10-Q, copies of which may be obtainedby contacting Granite’s investor relations department at (831) 724-1011 or atGranite’s website at www.graniteconstruction.com.

SOURCE Granite Construction Incorporated