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Granite Construction reaffirms positive outlook

Granite Construction Incorporated reaffirmed its positive outlook for the Company's financial performance in 2006. The Company reported that demand for its construction services and aggregate materials continues to be very strong in the West. The Branch Division is experiencing healthy public sector bidding opportunities, as well as private non-residential commercial and industrial work. The Company continues to expect the Branch Division to deliver 2006 operating income that exceeds the record performance set in 2005.

Granite will announce its third quarter 2006 results after the close of market on Wednesday, October 25, 2006. A conference call will be held at 11:00 am EDT on Thursday, October 26, 2006.



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