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.

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.

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

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:

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

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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