Active Market Conditions, Shortage of Labor and Increases in Material Prices Contribute to Construction Costs Increases In Second Quarter of 2007

NEW YORK, May 31 /PRNewswire/ -- Turner Construction Company, the nation's leading general builder, today announced that construction costs increased in the Second Quarter. According to the Turner Building Cost Index, the Second Quarter 2007 index showed a 1.93 percent increase in construction costs over the First Quarter 2007 and a 7.62 percent increase over the Second Quarter 2006 index. Turner has issued this quarterly forecast for more than 75 years.

According to Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, "Construction costs continue to be driven by the increasing level of activity in the non-residential building sector and a lack of available skilled labor to deliver projects. In addition, volatility is creeping back into the materials markets. Although drywall prices have turned down, structural steel, copper and petroleum based products are on the upswing again. Manufacturers and suppliers are also passing along increased transportation costs in their pricing structures."

Approximately 90% of Turner's business is performed under contract arrangements where Turner provides extensive preconstruction planning services before the contract price is fixed and before construction starts. By providing high quality pre-construction phase services and utilizing alternative procurement strategies, Turner continues to effectively serve its clients and manage the market risks associated with the cost escalation issues.

Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by The Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis-labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.

About Turner

Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. During 2006, Turner completed $8.6 billion of construction. Turner is the only builder offering clients a nationwide network of offices across the U.S. Founded in 1902, the firm is a subsidiary of HOCHTIEF, one of the world's leading international construction service providers. For more information, visit Turner's website at http://www.turnerconstruction.com/.

HOCHTIEF is one of the leading international providers of construction- related services. With almost 47,000 employees and a sales volume of EUR 15.51 billion in FY 2006, the company is represented in all the world's major markets. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner. With its Group subsidiary Leighton, HOCHTIEF is market leader in Australia. The HOCHTIEF service offering in the fields of development, construction, services, concessions and operation covers the entire value chain of properties, facilities and infrastructure projects. Further information is available at http://www.hochtief.com/press.