Perini Corporation Enters Into Letter of Intent to Acquire Cherry Hill Construction Company, Inc.; Acquisition to Support Perini's Expansion Into Mid-Atlantic and Southeast Regions

Business Wire, Sept 3, 2004

FRAMINGHAM, Mass. -- Perini Corporation (NYSE:PCR), a leading building, civil construction and construction management company, today announced that it had signed a letter of intent to acquire Cherry Hill Construction Company, Inc., a privately held construction company.

Based in Jessup, Maryland, Cherry Hill Construction Company, Inc. is an established civil construction company in the Mid-Atlantic and Southeast regions, with 2003 revenues and pretax earnings of $119.0 million and $3.6 million respectively. Cherry Hill Construction Company, Inc. specializes in excavation, foundations, paving and construction of civil infrastructure. Under the terms of the proposed transaction subject to due diligence, Perini agreed to acquire 100% of the company's stock for $20 million in cash, subject to terms and conditions, including lender approval.

Under the terms of the Agreement, Cherry Hill Construction Company, Inc. will operate as a wholly owned subsidiary of Perini Corporation and will be managed by its current senior management team.

"We are very pleased to announce this proposed transaction, which will expand our civil construction market presence in the Mid-Atlantic and Southeast regions and support Perini's strategy to achieve profitable growth," said Ronald N. Tutor, Perini's Chairman and CEO.

"Cherry Hill Construction Company, Inc. brings with it an excellent regional reputation as a `builder of choice' for heavy civil projects. The company meets every one of our stringent qualifications for a potential acquisition. It has a track record of profitable operations. It has a growth-oriented management team that wants to stay and continue to build the company. It expands our physical footprint and brand in a marketplace that is rich with opportunities for growth. And, most importantly, Cherry Hill Construction Company, Inc. shares Perini's commitment to building long-term client relationships, based on on-time delivery, tight cost controls and high quality standards."

Cherry Hill Construction Company, Inc. employs over 300 people in the Mid-Atlantic and Southeast regions.

Perini Corporation expects that the transaction will be financed through the use of cash on hand and existing capacity under the Company's credit agreement.

About Perini Corporation

Perini Corporation is a leading construction services company offering diversified general contracting, construction management and design-build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large complex projects on time and within budget while adhering to strict quality control measures. We offer general contracting, preconstruction planning and comprehensive project management services, including the planning and scheduling of the manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including sitework, concrete forming and placement and steel erection. We are known for our hospitality and gaming industry projects, sports and entertainment, educational, and healthcare facilities as well as large and complex civil construction projects and construction management services to U.S. military and government agencies.

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation, statements regarding the Company's expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the continuing validity of the underlying assumptions and estimates of total forecasted project revenues, costs and profits and project schedules; the outcomes of pending or future litigation, arbitration or other dispute resolution proceedings; the availability of borrowed funds on terms acceptable to the Company; the ability to retain certain members of management; the ability to obtain surety bonds to secure its performance under certain construction contracts; possible labor disputes or work stoppages within the construction industry; changes in federal and state appropriations for infrastructure projects; possible changes or developments in worldwide or domestic political, social, economic, business, industry, market and regulatory conditions or circumstances; and actions taken or not taken by third parties, including the Company's customers, suppliers, business partners, and competitors and legislative, regulatory, judicial and other governmental authorities and officials. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.