August 11, 1997                                            FOR IMMEDIATE RELEASE


                       ATKINSON COMMENCES CHAPTER 11 CASE


FROM:                      ATKINSON
                           1001 Bayhill Drive, 2nd Floor
                           San Bruno, CA  94066

CONTACT:                   Jim Stevens, Vice President, Administration
                           (415) 876-1681


SAN BRUNO,  CALIFORNIA,  August 11, 1997, Guy F. Atkinson  Company of California
(ATKN:NASDAQ/NMS)   today   announced   that  it  has  filed  a   petition   for
reorganization  under  Chapter 11 of the U.S.  Bankruptcy  Code.  The action was
filed  August 10, 1997 in the United  States  Bankruptcy  Court for the Northern
District of California.
         The Company's bank lines of credit totaling $55 million matured on June
30, 1997. The Company has been  unsuccessful  in negotiating  with its banks for
the renewal of the credit lines and to obtain additional financing.
         "As a result of the  discussions  with our banking  syndicate and after
considering other  alternatives,  we concluded that Chapter 11 provided the most
favorable  approach for the Company and its  stockholders  and creditors,"  said
Jack J. Agresti,  President  and Chief  Executive  Officer of the Company.  "The
filing  should allow us to use existing cash to continue to operate our business
while we pursue  alternative  sources of financing or a possible merger or other
business combination."
         The Company said that its wholly owned  subsidiaries,  Guy F.  Atkinson
Company,  a  Nevada  corporation,  and  Guy F.  Atkinson  Holdings,  a  Canadian
corporation,  through which it conducts  substantially  all of its  construction
operations, also filed Chapter 11 petitions.
         Atkinson operates both domestically and internationally  providing full
service  construction  to private and public markets for power,  infrastructure,
industrial  processes,   pulp  and  paper,  mining,  and  water  and  wastewater
treatment.
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