Granite Construction Incorporated Announces Upward Revision of Fourth Quarter and Full Year 2006 Earnings

WATSONVILLE, Calif., Feb. 22 /PRNewswire-FirstCall/ -- GraniteConstruction Incorporated (NYSE: GVA) today announced an upward revision toits fourth quarter and year-to-date 2006 earnings in the amount ofapproximately $2.3 million or $0.05 per diluted share. The revision reflectsmanagement’s evaluation of a subsequent event involving a partial settlementof an unresolved revenue issue on its Heavy Construction Division State Route22 project in Southern California which occurred after its earnings release onFebruary 14, 2007.

The revised year-to-date 2006 net income is $80.5 million or $1.94 perdiluted share, versus $78.2 million, or $1.89 per diluted share originallyreported on February 14, 2007.

A reconciliation between the results originally reported in our earningsrelease on February 14, 2007 and the revised results for the year endedDecember 31, 2006 is as follows (in thousands except per share amounts):

                                    As Originally    Adjustment    As Revised                                      Reported    Total revenue                      $2,964,904       $4,700    $2,969,604    Gross profit                          290,420         5,300      295,720    Income before     provision for income     taxes and minority     interest                             107,717         5,300      113,017    Minority interest                       7,720        (1,550)       6,170    Net income                             78,220         2,289       80,509    Net income per share:         Basic                               1.91          0.06         1.97         Diluted                             1.89          0.05         1.94

Audited financial results will appear in Granite’s Form 10-K, which willbe filed on or before March 1, 2007.

Company Description

Granite, a member of the S&P 400 Midcap Index, the Domini 400 Social Indexand the Russell 2000, is one of the nation’s largest diversified heavy civilcontractors and construction materials producers. Granite Construction servespublic and private sector clients through its offices nationwide. For the 4thstraight year, Granite was named to FORTUNE’S List of 100 Best Companies toWork For. For more information about the company, please visit their websiteat www.graniteconstruction.com.

SOURCE Granite Construction Incorporated