Exhibit 99.1

NEWS RELEASE

Contact: Jacque Fourchy
(831) 761-4741

GRANITE REPORTS IMPROVED SECOND-QUARTER 2011 RESULTS

§	Revenue up 7 percent from a year ago
§	Net income of $4.9 million compared with net loss of $6.7 million
§	SG&A decreased 24 percent to $38.8 million
§	Total contract backlog of $2.1 billion compared with $1.6 billion a year ago
§	Balance sheet strong with $317.9 million in cash, cash equivalents and marketable securities

WATSONVILLE, Calif. (August 3, 2011) — Granite Construction Incorporated (NYSE: GVA) today reported net income of $4.9 million, or $0.13 per diluted share, for the second quarter of 2011 compared with a net loss of $6.7 million, or $0.18 per diluted share, for the second quarter of 2010.

“I am pleased to report that our teams delivered improved operating results and added $526.7 million of new awards during the second quarter,” said James H. Roberts, Granite’s president and chief executive officer. “The quarter was, however, impacted by wet weather in certain geographic locations that pushed out some revenue and gross profit to the second half of the year. There is also no question that competition remains fierce and funding uncertainties are weighing heavily on many of our customers. To successfully manage through this cycle, we continue to focus our efforts on building quality backlog, managing our cost structure, and operating effectively and efficiently in all aspects of our business.”

Second-quarter 2011 Financial Results

Total Company

§	Revenue totaled $484.7 million compared with $454.2 million in 2010, driven largely by an increase in Construction segment revenue.
§	Gross profit margin was 9 percent compared with 11 percent in 2010.
§	Selling, general and administrative expenses for the second quarter were $38.8 million compared with $51.4 million for the same period last year as a result of the Company’s continued focus on improving efficiencies as well as the actions the Company took in late 2010 to reduce its cost structure.

§	Operating income for the quarter was $9.4 million compared with $2.1 million in the prior year driven largely by a decrease in selling, general and administrative expenses.
§	Net income attributable to noncontrolling interests in joint ventures was $1.2 million compared with $4.1 million in 2010.
§	Total contract backlog at June 30, 2011, was $2.1 billion compared with $1.6 billion a year ago due to continued bidding successes.

Construction

§	Construction revenue for the quarter increased 10 percent to $260.6 million due to a higher volume of work completed in the quarter compared to a year ago.
§	Gross profit margin for the second quarter was 9 percent compared with 10 percent a year ago reflecting the continued pressure on margins due to intense competition.

Large Project Construction

§

Large Project Construction revenue for the quarter increased 6 percent to $162.3 million reflecting continued progress on the Queens Bored Tunnels and Structures project in the East and the SR 520 and Mountain View Corridor projects in the Northwest.

§

Gross profit margin for the quarter was 8 percent compared with 14 percent for the same period last year. The decrease is associated with 74.4 million in revenue recognized on projects that have not reached the profit recognition threshold compared with 34.4 million last year. In addition, the Company settled a project design issue in the second quarter of 2010 with no corresponding settlement in 2011.

Construction Materials

§	Construction Materials revenue for the quarter totaled $58.1 million compared with $61.1 million for the same period last year.
§	Gross profit on the sale of construction materials was 15 percent compared with 7 percent in 2010 reflecting increased production efficiencies to meet growing Construction backlog.

Outlook

“Our year over year improvement is encouraging, however, we continue to face a very difficult and competitive bidding environment across the country,” said Roberts. “While we are not out of the woods with this downturn, I am pleased with the amount and quality of our current backlog and I remain confident in the long-term outlook for our business,” he said.

The Company’s fiscal 2011 guidance for its operating segments remains unchanged. Construction segment revenue is expected to be $1.0 billion to $1.2 billion with a corresponding gross profit margin between 9 percent and 11 percent. Large Project Construction segment revenue is expected to be $650 million to $850 million with a corresponding gross profit margin of between 13 percent and 15 percent. Construction Materials segment revenue is expected to be $170 million to $200 million with corresponding gross profit margin between 7 percent and 9 percent. The Company is updating its guidance for net income attributable to noncontrolling interests in joint ventures to a range of $12 million to $16 million.

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Conference Call

Granite will conduct a conference call tomorrow, August 4, 2011 at 8 a.m. Pacific time/11 a.m. Eastern time to discuss the results of the quarter ended June 30, 2011. Access to a live audio webcast is available at www.graniteconstruction.com/investor-relations. The live conference call may be accessed by calling (877) 693-6483. The conference ID for the live call is 82727819. The call will be recorded and will be available for replay approximately two hours after the live audio webcast through August 25, 2011 by calling (855) 859-2056. The conference ID for the replay is also 82727819.

About Granite

Granite is one of the nation’s leading infrastructure contractors and is member of the S&P 400 Midcap Index, the FTSE KLD 400 Social Index and the Russell 2000 Index. Through its wholly owned subsidiary, Granite is one of the nation’s largest diversified heavy civil contractors and construction materials producers serving public- and private-sector clients nationwide. In addition, Granite has one of the oldest and most robust ethics and compliance programs in the industry. The Company was recently recognized by the Ethisphere Institute as one of the World’s Most Ethical Companies for the second year in a row. For more information, please visit graniteconstruction.com.

Forward-looking Statements

Any statements contained in this news release that are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by words such as “future,” “outlook,” “assumes,” “believes,” “expects,” “estimates,” “anticipates,” “intends,” “plans,” “appears,” “may,” “will,” “should,” “could,” “would,” “continue,” and the negatives thereof or other comparable terminology or by the context in which they are made. These forward-looking statements are estimates reflecting the best judgment of senior management and reflect our current expectations regarding future events, occurrences, circumstances, activities, performance, outcomes and results. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, those described in greater detail in our filings with the Securities and Exchange Commission, particularly those specifically described in our Annual Report on Form 10-K under “Item 1A. Risk Factors.”

Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this news release and, except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason.

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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited — in thousands, except share and per share data)

	June 30,		December 31,		June 30,
	2011		2010		2010
ASSETS
Current assets
Cash and cash equivalents	$	190,069	$	252,022	$	208,450
Short-term marketable securities		78,255		109,447		73,566
Receivables, net		283,944		243,986		295,779
Costs and estimated earnings in excess of billings		51,739		10,519		56,665
Inventories		64,727		51,018		48,529
Real estate held for development and sale		78,725		75,716		148,897
Deferred income taxes		52,714		53,877		31,870
Equity in construction joint ventures		87,653		74,716		72,571
Other current assets		34,779		42,555		39,031
Total current assets		922,605		913,856		975,358
Property and equipment, net		464,616		473,607		501,258
Long-term marketable securities		49,580		34,259		68,291
Investments in affiliates		32,932		31,410		31,210
Other noncurrent assets		82,214		82,401		79,060
Total assets	$	1,551,947	$	1,535,533	$	1,655,177
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	8,351	$	8,359	$	8,538
Current maturities of non-recourse debt		16,454		29,760		39,657
Accounts payable		179,664		129,700		173,637
Billings in excess of costs and estimated earnings		122,014		120,185		144,935
Accrued expenses and other current liabilities		156,727		150,773		161,632
Total current liabilities		483,210		438,777		528,399
Long-term debt		208,519		217,014		216,870
Long-term non-recourse debt		28,907		25,337		16,615
Other long-term liabilities		46,460		47,996		49,197
Deferred income taxes		10,983		10,774		27,905
Equity
Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding		—		—		—
Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding 38,667,457 shares as of June 30, 2011, 38,745,542 shares as of December 31, 2010 and 38,788,581 shares as of June 30, 2010		387		387		388
Additional paid-in capital		105,287		104,232		98,142
Retained earnings		642,228		656,412		677,873
Total Granite Construction Incorporated shareholders’ equity		747,902		761,031		776,403
Noncontrolling interests		25,966		34,604		39,788
Total equity		773,868		795,635		816,191
Total liabilities and equity	$	1,551,947	$	1,535,533	$	1,655,177

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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited — in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenue
Construction	$	260,600		$	237,943		$	353,292		$	319,129
Large project construction		162,338			153,328			300,158			259,653
Construction materials		58,114			61,089			81,912			87,253
Real estate		3,622			1,844			6,043			8,852
Total revenue		484,674			454,204			741,405			674,887
Cost of revenue
Construction		237,211			215,042			324,350			294,382
Large project construction		149,680			131,493			256,202			228,335
Construction materials		49,644			56,609			80,712			89,898
Real estate		3,183			1,362			5,197			6,860
Total cost of revenue		439,718			404,506			666,461			619,475
Gross profit		44,956			49,698			74,944			55,412
Selling, general and administrative expenses		38,793			51,357			82,165			106,649
Gain on sales of property and equipment		3,270			3,800			5,974			8,252
Operating income (loss)		9,433			2,141			(1,247	)		(42,985	)
Other expense
Interest income		575			1,098			1,819			2,037
Interest expense		(879	)		(3,013	)		(4,235	)		(6,747	)
Equity in loss of affiliates		(181	)		(387	)		(438	)		(706	)
Other (expense) income, net		(688	)		1,934			(118	)		4,831
Total other expense		(1,173	)		(368	)		(2,972	)		(585	)
Income (loss) before provision for (benefit from) income taxes		8,260			1,773			(4,219	)		(43,570	)
Provision for (benefit from) income taxes		2,087			4,406			(3,136	)		(3,207	)
Net income (loss)		6,173			(2,633	)		(1,083	)		(40,363	)
Amount attributable to noncontrolling interests		(1,227	)		(4,058	)		(2,978	)		(7,282	)
Net income (loss) attributable to Granite Construction Incorporated	$	4,946		$	(6,691	)	$	(4,061	)	$	(47,645	)
Net income (loss) per share attributable to common shareholders:
Basic (1)	$	0.13		$	(0.18	)	$	(0.11	)	$	(1.26	)
Diluted (1)	$	0.13		$	(0.18	)	$	(0.11	)	$	(1.26	)
Weighted average shares of common stock:
Basic		38,140			37,850			38,052			37,770
Diluted		38,479			37,850			38,052			37,770

Note:

(1) Computed using the two-class method, except when in a net loss position

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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited — in thousands)

Six Months Ended June 30,	2011			2010
Operating activities
Net loss	$	(1,083	)	$	(40,363	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion and amortization		30,464			35,839
Gain on sales of property and equipment		(5,974	)		(8,252	)
Stock-based compensation		5,913			6,885
Gain on company owned life insurance		(536	)		(1,748	)
Changes in assets and liabilities, net of the effects of consolidations		(45,520	)		(31,279	)
Net cash used in operating activities		(16,736	)		(38,918	)
Investing activities
Purchases of marketable securities		(65,287	)		(60,073	)
Maturities of marketable securities		58,375			24,900
Proceeds from sale of marketable securities		19,268			10,000
Proceeds from company owned life insurance		—			2,078
Additions to property and equipment		(27,542	)		(21,809	)
Proceeds from sales of property and equipment		10,266			11,936
Purchase of private preferred stock		(50	)		(6,400	)
Other investing activities, net		170			(869	)
Net cash used in investing activities		(4,800	)		(40,237	)
Financing activities
Long-term debt principal payments		(16,151	)		(18,155	)
Cash dividends paid		(10,061	)		(10,067	)
Purchase of common stock		(3,662	)		(3,434	)
Distributions to noncontrolling partners, net		(11,616	)		(19,797	)
Other financing activities		1,073			102
Net cash used in financing activities		(40,417	)		(51,351	)
Decrease in cash and cash equivalents		(61,953	)		(130,506	)
Cash and cash equivalents at beginning of period		252,022			338,956
Cash and cash equivalents at end of period	$	190,069		$	208,450

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GRANITE CONSTRUCTION INCORPORATED
Business Segment Information
(Unaudited — dollars in thousands)

	Three Months Ended June 30,												Six Months Ended June 30,
				Large Project			Construction									Large Project			Construction
	Construction			Construction			Materials			Real Estate			Construction			Construction			Materials			Real Estate
2011
Revenue	$	260,600		$	162,338		$	58,114		$	3,622		$	353,292		$	300,158		$	81,912		$	6,043
Gross profit		23,389			12,658			8,470			439			28,942			43,956			1,200			846
Gross profit as a percent of revenue		9.0	%		7.8	%		14.6	%		12.1	%		8.2	%		14.6	%		1.5	%		14.0	%
2010
Revenue	$	237,943		$	153,328		$	61,089		$	1,844		$	319,129		$	259,653		$	87,253		$	8,852
Gross profit (loss)		22,901			21,835			4,480			482			24,747			31,318			(2,645	)		1,992
Gross profit (loss) as a percent of revenue		9.6	%		14.2	%		7.3	%		26.1	%		7.8	%		12.1	%		(3.0	)%		22.5	%

GRANITE CONSTRUCTION INCORPORATED
Contract Backlog by Segment
(Unaudited — dollars in thousands)

Contract Backlog by Segment	June 30, 2011				March 31, 2011				June 30, 2010
Construction	$	800,434	38.0	%	$	696,055	34.7	%	$	594,214	38.3	%
Large project construction		1,306,961	62.0	%		1,307,622	65.3	%		957,080	61.7	%
Total	$	2,107,395	100.0	%	$	2,003,677	100.0	%	$	1,551,294	100.0	%

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