Wilder Construction Company to Become Wholly Owned Subsidiary of Granite
                                  Construction

      WATSONVILLE, Calif., Nov. 15 /PRNewswire-FirstCall/ -- Granite
Construction Incorporated (NYSE: GVA) today announced that the minority
employee-shareholders of Wilder Construction Company have approved the sale of
their shares to Granite. Wilder is a Pacific Northwest-based heavy civil
construction company in which Granite currently holds (through a subsidiary) a
76.8% interest. Under the terms of the agreement, the minority shares of Wilder
will be acquired for approximately $28 million in cash.

      "We are extremely pleased to announce this transaction. Wilder is a very
well-managed company with a high quality team of people. We are proud of the
relationship we have built with Wilder over the last eight years and are excited
about the long-term opportunities this merger creates for both companies," said
William G. Dorey, Granite President and Chief Executive Officer. "With a strong
regional presence in Washington and Alaska, Wilder fits strategically within our
geographic expansion plans. This merger, in conjunction with our acquisition of
Superior early this year, is an example of how we intend to expand our
vertically integrated business and advance our strategy of pursuing disciplined
growth in Granite West."

      These Wilder shares were subject to certain mandatory redemption
provisions and the estimated redemption liability has been recorded as a
long-term liability in Granite's consolidated financial statements. For
accounting purposes, the excess of the amount to be paid for these minority
shares over the recorded liability will be recorded as a one-time charge of
approximately $8.0 million, or $0.20 per diluted share. This charge will be
recorded in the fourth quarter - the quarter in which the minority
employee-shareholder approval condition was met and the close of the transaction
is anticipated to occur. The Company's fiscal 2007 earnings guidance provided in
its third quarter financial earnings release dated October 24, 2007 did not
reflect this non-recurring charge.

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

      About Wilder

      Founded in 1911, Wilder Construction Company is a heavy civil construction
company and construction materials producer with regional offices located in
Washington and Alaska. The company has annual revenues of approximately $250
million. Wilder employs approximately 900 salaried and hourly people throughout
the Pacific Northwest and Alaska. The Company's corporate office is located 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 Construction Company,
a wholly owned subsidiary, is one of the nation's largest diversified heavy
civil contractors and construction materials producers. Granite Construction
Company serves public and private sector clients through its offices and
subsidiaries nationwide. For the 4th straight year, Granite was named to
FORTUNE'S List of 100 Best Companies to Work For. For more information about
Granite, please visit their website at www.graniteconstruction.com.



      Forward-Looking Statements

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

      All such forward-looking statements are subject to risks and uncertainties
that could cause actual results of operations and financial condition and other
events, as well as the timing thereof, to differ materially from those expressed
or implied in such forward-looking statements. Specific risk factors include,
without limitation, changes in the composition of applicable federal and state
legislation appropriation committees; federal and state appropriation changes
for infrastructure spending; the general state of the economy; job productivity;
accuracy of project estimates; weather conditions; competition and pricing
pressures; and state referendums and initiatives. You should not place undue
reliance on these forward-looking statements, which speak only as of the date of
this news release. You should also understand that many important factors in
addition to those discussed, referred to or incorporated by reference in this
press release, could cause our results to differ materially from those expressed
in the forward-looking statements. In light of these risks and uncertainties, it
is important to be aware that the forward-looking events discussed in this
release may not occur. We undertake no obligation to revise or update publicly
any forward-looking statements to conform the statement to actual results or
changes in the Company's expectations.

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