Tutor Perini Corporation Signs Letter of Intent with Lunda Corporation

June 2, 2011

SYLMAR, Calif., Jun 02, 2011 (BUSINESS WIRE) -- Tutor Perini Corporation (NYSE: TPC) a leading civil and building construction company, today announced that it has signed a Letter of Intent (LOI) to acquire 100% of the stock of Lunda Construction Company ("Lunda").

Established in 1938, Lunda is in the top tier of heavy civil contractors engaged in the construction, rehabilitation and maintenance of bridges, railroads, dams and other civil structures in the Midwest and throughout United States. Headquartered in Black River Falls, Wisc., Lunda has three operating divisions located in six offices in Wisconsin and Minnesota and has worked in 30 states across the United States. Lunda has over 600 employees and a current backlog of approximately $400 million. Revenues were approximately $400 million in fiscal year ended December 31, 2010.

Under the terms of the LOI, the purchase price for Lunda is expected to be $153.5 million, consisting of $131.8 million in cash at closing and $21.7 million in a note payable in five years, plus a structured earnout based on profitability targets for three years following the closing date. The purchase price is subject to an adjustment based upon the tangible net worth of Lunda at closing. The transaction closing is subject to obtaining the customary regulatory and other third party approvals, entering into a definitive stock purchase agreement and completing due diligence. The transaction is expected to close on July 1, 2011.

Lunda will continue to operate under the current company name and will continue to be managed by its current senior management team, with Larry Lunda remaining as President and CEO.

Ronald N. Tutor, Chairman and CEO of Tutor Perini, said: "Lunda Construction is one of the most successful civil contractors in the United States and represents our expansion into the Midwestern markets. They have a resume of experience which complements our operations, and we in turn will be in a position to support their growth objectives in their existing markets."