2007 Annual Report

MGM MIRAGE CityCenter The 76-acre, 18-million-square-foot CityCenter is the largest privately financed project in the United States.

ARIA Resort-Casino61-story, 4,000-room hotel tower designed by Pelli Clarke Pelli Architects (New Haven, CT) with approximately 300,000 square feet of meeting and convention space

Vdara Condo Hotel57-story tower with approximately 1,543 residential units designed by RV Architects, LLC (New York) led by Rafael Viñoly

Veer TowersTwo 37-story glass towers, each with approximately 337 condominium residences designed by Helmut Jahn (Chicago)

The Harmon Hotel, Spa & Residences400-room hotel with approximately 200 condominium residences designed by Foster and Partners (London)

Mandarin Oriental, Las VegasApproximately 227 luxury condominium units (The Residences at Mandarin Oriental) atop a hotel tower designed by Kohn Pedersen Fox Architects (New York)

The CrystalsA neighborhood of unique retail shops, dining and entertainment venues will feature international luxury brands and high-end couture under a crystalline canopy. David Rockwell and Rockwell Group (New York) is designing the interiors. Exteriors designed by Studio Daniel Libeskind (New York)

Mandarin Oriental, Las Vegas

ARIA Resort-Casino

Vdara Condo Hotel

The Harmon Hotel, Spa & Residences

The Crystals

Veer Towers

1

Revenues by Segment(dollars in millions)

Building......................... $4,248.8

Civil ......................................234.8

Management Services ......144.8

$4,628.4

Backlog by Segment(dollars in millions)

Building......................... $6,981.7

Civil ......................................457.8

Management Services ......128.1

$7,567.6

(In thousands, except per share data) 2007 2006 2005

Total Revenues $4,628,358 $3,042,839 $1,733,477

Pretax Income $ 154,395 $ 69,689 $ 6,921

Net Income $ 97,114 $ 41,536 $ 4,049

Basic Earnings per Common Share $ 3.62 $ 1.56 $ 0.21

Diluted Earnings per Common Share $ 3.54 $ 1.54 $ 0.20

New Contracts Awarded $3,744,642 $3,596,436 $8,479,786

Backlog at Year-End $7,567,665 $8,451,381 $7,897,784

Book Value per Common Share $ 13.65 $ 9.18 $ 6.86

Weighted Average Number of CommonShares Outstanding 26,819 26,308 25,518

Financial Highlights

Income Before Taxes (dollars in millions)

* Adjusted to exclude the $40.4 million charge resulting from the WMATA judgment

30.9

03

44.9

04

47.3*

05

69.7

06

154.4

07

Working Capital (dollars in millions)

125.4

03

178.0

04

153.3

05

194.0

06

293.5

07

Net Worth (dollars in millions)

120.6

03

174.0

04

183.2

05

243.9

06

368.3

07

Book Value per Share (dollars)

4.65

03

6.34

04

6.86

05

9.18

06

13.65

07

2

To Our Shareholders

2007 was a landmark year for Perini in which we benefitted from our strategy to pursue higher-margin, com-

plex projects, a capability we will enhance through a combination with Tutor-Saliba Corporation announced

in April 2008. For 2007, we reported $4.6 billion in revenues and $97.1 million in net income, the highest

ever recorded in our 114-year history. Our success this year was primarily the result of outstanding perform-

ances by our building and management services segments. Our building segment continued to execute

each of our large-scale hospitality and gaming projects effectively; Rudolph and Sletten reinforced its

position as a leader in the construction of healthcare, industrial and Native American gaming projects in

California; and James A. Cummings had a record year in terms of revenue and profit. Our management

services segment made a substantial contribution to profitability due to its task order work at U.S. govern-

ment facilities in Iraq and England, and surety completion projects in the U.S. We closed the year with

a backlog of $7.6 billion.

Perini: A Recognized Leader in Building Construction

Perini is proud to be known as the builder of choice for large-scale, complex projects due to our proven

ability to deliver projects on time and within budget. This expertise was evident in our work on the Trump

International Hotel & Towers in Las Vegas. We reached a major construction milestone when we topped

off the 645-foot, signature 24-carat gold tinted glass tower in May. A team of over 800 craftspeople worked

around the clock, constructing approximately one floor every six days. Now completed in early 2008, the

tower features a world-class spa and salon, a business center with meeting facilities, and a heated outdoor

pool with a spacious sundeck and bar.

We also made good progress on each of our other major gaming and hospitality contracts, including the

$5.5 billion MGM MIRAGE CityCenter and the $1.8 billion Cosmopolitan Resort and Casino in Las Vegas.

In addition, we are nearing completion on our two major projects in the Northeast—the $510 million

MGM Grand at Foxwoods in Connecticut and the $795 million joint venture for the Gaylord National Resort

and Convention Center in Prince Georges County, Maryland.

Perini was recognized for our expertise and leadership in building construction in 2007. Perini Building

Company received the top three construction awards from the American Gaming Association for our

work on the Red Rock Casino Resort Spa in Las Vegas and Phase II of the Pechanga Resort & Casino in

California. Rudolph and Sletten was ranked the top builder of healthcare facilities in California by California

Construction magazine. James A. Cummings, Inc. received two construction safety awards from the

Central Florida Chapter of the Associated Builders and Contractors.

Demand in Key Markets Remains Strong

Demand continued in each of our key markets and geographic areas in 2007, adding a total of $3.7 billion

of new contract awards and additions to existing contracts to backlog. The building segment accounted for

$3.4 billion of new work awards in 2007. Approximately $1.5 billion of this was for additional work on our

large-scale projects in Las Vegas as these projects grew in both size and scope. The building segment also

Ronald N. Tutor Chairman & Chief Executive Officer

Robert Band President & Chief Operating Officer

3

benefitted from strong demand outside of Las Vegas, particularly in California and Florida. Rudolph and

Sletten added $1.6 billion in new work awards in California, including contracts for an office complex,

expansion of a medical center and construction of the Foothill Oaks Casino near Sacramento. James A.

Cummings added $146 million in new work awards, including contracts to build a high school in Orlando

and a parking structure at a shopping mall in Southern Florida.

The civil segment added $263 million in new work, including projects in New York City and Maryland.

Management services added $84 million in new awards to backlog, including $68 million in new task

orders for work in Iraq. In January 2008, Perini Management Services was one of ten contractors awarded

a Sustainment/Restoration & Modernization Acquisition Task Order Contract (SATOC) from the U.S. Air

Force under a $4.0 billion program.

The projects added to our backlog clearly demonstrate the diversity of our work and the robust pipeline

of opportunities available to Perini. At year end our backlog stood at $7.6 billion, including 92% cost plus

fee and guaranteed maximum price contracts. Although backlog declined 10% from $8.5 billion at the

end of 2006, this modest burn-off is a normal part of our business as we complete major building projects

and replace them with new large-scale projects.

Sustaining Momentum in 2008

The real story is the approximately $20 billion of targeted building project opportunities where Perini has

been in active discussions with repeat clients and new potential owners as well as the $3–4 billion targeted

civil projects on which we expect to make bids and proposals. We are keenly focused on sustaining the posi-

tive momentum of our business. We have identified this healthy pipeline of new projects in the hospitality

and gaming, healthcare and education markets in the Northeast, California, Florida and Las Vegas. We also

see numerous opportunities for new work awards for our civil and management services segments.

Our significant backlog provides us with excellent revenue and earnings visibility into 2008. We anticipate

another record year of revenues and profit led by our building segment. We expect management services

will again make a strong contribution to our bottom line, and anticipate improvement in our civil segment

as work begins on several new projects.

Building for the Future

The year 2008 marks a historical juncture for Perini. We look forward to greatly enhancing our Company

through the recently-announced combination with Tutor-Saliba Corporation, a privately held company

substantially owned by our Chairman and CEO Ronald N. Tutor. The union of these two companies, with

total pro forma backlog at the end of 2007 surpassing $9 billion, will create the premier publicly-traded

general contractor in the United States, with operations spanning the continental U.S. and several over-

seas locations. The combined company will be a leading building contractor, particularly in the hospitality

and gaming market, as well as command a strong civil infrastructure market presence in California,

New Work Acquisition by Segment(dollars in millions)

Building......................... $3,398.0

Civil ......................................263.0

Management Services ........ 84.0

$3,745.0

4

Nevada and the Northeast and Mid-Atlantic states. Perini will have an established position in the high-

growth construction market in Guam through Tutor-Saliba’s ownership of a local contractor which will

complement our management services’ traditional market of U.S. government work overseas. We are

planning for the enhanced revenues, profits and business opportunities that will be products of this union.

Perini and Tutor-Saliba have successfully performed in excess of $3.0 billion of joint venture projects

together since the mid-1970’s. We expect that this transaction, for which we are requesting approval

from our shareholders, will be accretive to earnings per share in its first full fiscal year.

A Special Committee made up of independent members of our Board, led by Michael R. Klein, lead

independent director, determined the transaction to be in the best interest of our shareholders, and

recommended it to the full Board, where it has unanimous support. As a condition of the agreements,

Ronald N. Tutor has committed to remain with the Company and retain a significant portion of the shares

he receives for at least five years following the closing.

Tutor-Saliba Corporation reported 2007 revenues and operating income of $1.2 billion and $52 million,

respectively. Tutor-Saliba is a leading civil infrastructure and commercial building construction company

that focuses on large, complex projects. The Company has a strong pipeline of targeted building projects

and civil works programs and has significant capacity to self-perform critical construction specialties such

as concrete placement, site excavation and mechanical/electrical services. In a new market for us, they

own the largest contractor in Guam. Tutor-Saliba’s talented, hands-on management team will complement

our own, particularly in the Civil segment. We look forward to joining together these fine organizations and

reporting our progress to you over the coming year.

We would like to take this opportunity to welcome Kenneth R. Burk, who joined Perini in September 2007 as

Senior Vice President and Chief Financial Officer. Mr. Burk has over 24 years of experience in the engineer-

ing and construction industry. We look forward to the contributions he will make to Perini in the years ahead.

In closing, we would like to thank all of our partners, clients and employees who have contributed to our

success. We would also like to thank our shareholders for your continued support and confidence in us.

We remain committed to maximizing the value of Perini.

To Our Shareholders

Year End Stock Price (in dollars)

9.15

03

16.69

04

24.15

05

30.78

06

41.42

07

Ronald N. Tutor

Chairman & Chief Executive Officer

Robert Band

President & Chief Operating Officer

Building Operations Our building segment, comprised of PeriniBuilding Company, James A. Cummings, Inc.,and Rudolph and Sletten, focuses on large,complex projects in specialized constructionmarkets including hospitality and gaming,health care, education, commercial office,biotech/pharmaceutical, high-tech and sportsand entertainment. We value collaboration withour clients, architects and subcontractors andplace a strong emphasis on preconstructionplanning to establish reliable budgets andschedules.

Management ServicesOur management services segment providesdiversified construction, design-build andmaintenance services to the U.S. military andgovernment agencies as well as surety compa-nies and multi-national corporations in theUnited States and overseas. Our core manage-ment team and record of successful fast-trackperformance makes us well suited to executerapid response assignments requiring sophisti-cated planning and global logistics. We areteam-centered and deliver the full-breadth ofPerini’s experience and resources to projectsthroughout the world.

Civil ConstructionOur civil segment, comprised of Perini Civil andCherry Hill Construction, focuses on competi-tively bid public works projects primarily in met-ropolitan New York and northern New Jersey, themid-Atlantic States, and Florida. Year-to-year, ourbacklog includes the repair, replacement and reconstruction of the public infrastructure suchas highways, bridges, mass transit systems andwastewater treatment facilities.

5

Introduction to Operating Segments

2007: Management Approach Affirmed by Record Results

The success of a construction company is measured by its ability to convert backlog into profitable year-end results. Perini’s record earnings

for 2007—net income of $97.1 million—affirms the Company’s approach to project selection and execution. More importantly, 2007 was the

tenth consecutive year of positive net income and profit for the Company. The benefits of consistent performance are far-reaching, and serve

to strengthen our relationships with clients, financial partners and shareholders.

Our 2007 performance further solidifies Perini’s long-standing position as one of the leading construction services organizations in the

United States. Through three distinct operating segments—building, management services and civil—we offer diversified general contracting,

construction management and design-build services to private clients and public agencies throughout the world. During 2007, we performed

work on approximately 185 construction projects, with a workforce ranging from 3,800 to 4,450 employees.

6

Building Operations

Building Operations Profile(dollars in millions)

End Markets 2007 Revenues 2008 Backlog*

Hospitality & Gaming $ 2,830.5 $5,388.7Healthcare $ 574.2 $ 872.3Education $ 291.5 $ 186.3Commercial Office $ 250.9 $ 325.0Industrial $ 138.7 $ 115.1Residential Condominiums $ 57.7 $ 2.7Sports & Entertainment $ 5.7 $ 72.8Other $ 99.6 $ 18.8

*(12/31/07)

Project LocationsArizona CaliforniaConnecticut Maryland Nevada New Jersey Florida

Office Locations

Perini Building Company, Inc.Craig W. Shaw, Chairman and Chief Executive OfficerPhoenix, Arizona*Las Vegas, NevadaFramingham, Massachusetts

James A. Cummings, Inc.William R. Derrer, PresidentFt. Lauderdale, Florida*Celebration, FloridaW. Palm Beach, Florida

Rudolph and Sletten, Inc.Martin Sisemore, Chief Executive OfficerRedwood City, California*Irvine, CaliforniaRoseville, CaliforniaSan Diego, California

*Headquarters

Our building companies—Perini Building Company, James A. Cummings,

Inc. and Rudolph and Sletten—enjoy strong reputations in their respective

geographic markets. They consistently generate repeat and referral business

from discerning owners such as MGM Mirage, Gaylord Hotels,Trump Organi-

zation and Kaiser Permanente. In 2007, building operations accounted for

92% of corporate revenues.

We believe that relationships, including those with owners and architects,

are built on trust and that teamwork is essential to success. The discipline

of preconstruction planning is fundamental to our process, bringing up-to-

the-minute market expertise to bear on key processes such as design,

procurement and construction sequencing in order to establish reliable

budgets and realistic schedules.

Our success also results from our proven ability to manage and construct

large, complex projects with aggressive fast-track schedules and elaborate

architectural, mechanical and electrical designs. Our track record for

completing projects on time—sometimes early—is a distinct competitive

advantage in the markets on which we are focused, enabling clients to

realize a sooner-than-expected return on investment.

Perini Building Company is widely recognized as the nation’s #1 builder

in the hospitality and gaming market by Engineering News-Record and

other industry publications. In the highly competitive hospitality and gaming

industry, owners are frequently replacing outdated facilities with new high-

end destination resorts, or renovating and repositioning existing properties.

In 2007, Perini Building Company was awarded over $1 billion in additional

work on hospitality and gaming projects already under construction.

In Florida, James A. Cummings, Inc. is a leader in the construction of

schools, municipal buildings and commercial developments. Experiencing

growth in its markets, Cummings’ 2007 revenues more than doubled those

of the previous year.

In California, Rudolph and Sletten was named the State’s top general

contractor by California Construction, a McGraw-Hill publication. Rudolph

and Sletten specializes in the construction of health care, Native American

hospitality and gaming, biotech, pharmaceutical and high-tech projects

and is ranked among the nation’s top green building contractors.

7

(from top to bottom)Gaylord National Resort and Convention Center, MDThe Harlyne J. Norris Research Tower, USC, CAMGM Grand at Foxwoods, CTFort Pierce Central High School, FL

8

Management Services

Perini Corporation has been supporting the Department of Defense with

construction of facilities and infrastructure since the 1940s, and has been

leading design-build teams for the U.S. government since the early 1980s.

In 2007, Perini Management Services, Inc. proved once again to be a

valuable partner in support of U.S. military and government operations

throughout the world, especially in the Central Command (CENTCOM)

Area of Operations (including Iraq and Afghanistan), providing diversified

construction, design-build and maintenance services.

Our competitive position is enhanced by our long-standing relationship with

the U.S. Army Corps of Engineers, our ability to effectively lead specialized

engineering and construction teams, and our planning and execution of rapid

response assignments and multi-year contracts. In addition, we have demon-

strated consistently superior performance on competitively bid or negotiated

multi-year, multi-trade, task order and Indefinite Delivery/Indefinite Quantity

(ID/IQ) construction programs.

By virtue of our experience, team leadership and technical capabilities, we

are the “go to” contractor for overhead coverage protection projects through-

out Iraq. These structures, built over high-density gathering facilities such

as dining halls and PXs, protect U.S. and Coalition Forces from attack.

General David H. Petraeus, Commander of the Multi-National Force–Iraq,

and Brigadier General Michael J. Walsh, Commander of the U.S. Army Corps

of Engineers Gulf Region Division, recognized us for our quality and timely

construction services under this program.

Our new client, Air Force Center for Engineering and the Environment

(AFCEE), is extremely pleased with Perini’s performance at the Royal Air

Force Menwith Hill Station in the United Kingdom under our 10-year,

Heavy Engineering, Repair and Construction (HERC) contract with AFCEE.

We expect this task order to lead to additional work at the facility.

In January 2008, Perini was awarded a Sustainment/Restoration & Modern-

ization Acquisition Task Order Contract (SATOC) from the U.S. Air Force

(USAF) for maintenance, repair and replacement of buildings, pavements;

POL—petroleum, oils, and lubricants—fuel systems and utilities at installa-

tions around the world. The SATOC program is currently funded at $4 billion

to support USAF base infrastructure and contingency operations over the

next 10 years. Contractors were selected “based on overall best value to the

government including past experience and willingness to perform work in

remote, austere and hostile environments.”

We also provide diversified management services on a rapid response basis

to surety companies and multi-national corporations. Upon notification from

a surety of a contractor bond default, we provide management or general con-

tracting services to fulfill the contractual and financial obligations of the surety.

Management Services Profile(dollars in millions)

End Markets 2007 Revenues 2008 Backlog*

U.S. Government Services $131.4 $119.2Surety and Other $ 13.4 $ 8.9

*(12/31/07)

Project LocationsCENTCOM Area of Operations (Iraq et al)United KingdomUnited States

Office Locations

Perini Management Services, Inc.Robert Band, PresidentFramingham, Massachusetts*Kuwait City, KuwaitBaghdad, IraqLSA Anaconda, IraqDubai, United Arab EmiratesHarrogate, EnglandSan Antonio, Texas

*Headquarters

9

(from top to bottom)Overhead Coverage Protection, IraqEntry Control Point, IraqAircraft Acoustical Enclosure, U.S.Vanderbilt Infrastructure, U.S.

10

Perini Civil and Cherry Hill Construction are stewards of our Company’s

114-year-old reputation as one of the nation’s most highly regarded civil con-

tractors. We specialize in competitively bid, public works construction, and

the repair, replacement and reconstruction of infrastructure, primarily in the

northeastern and mid-Atlantic United States.

In 2007, the construction and rehabilitation of highways and bridges was the

mainstay of our operations. Revenues from highway and bridge construction

were more than double those from markets in which we have traditionally

been successful in the past, mass transit and wastewater treatment. In 2008

however, we will begin the multi-year construction of the $139 million Harold

Structures mass transit project—the reconfiguration of an Amtrak/LIRR

Rail Yard located in Queens, New York. This project is necessary as part

of Long Island Railroad’s East Side Access project that will bring commuter

rail service from Long Island into Grand Central Terminal in Manhattan.

Our technical capabilities, financial strength and outstanding performance

on challenging civil works projects such as the JFK AirTrain and the AirTrain

Terminal at Jamaica Station, Boston’s Central Artery/Tunnel project, and

the rehabilitation of the Triborough, Whitestone and Williamsburg bridges

in New York City preeminently qualify us for projects in situations where

smaller, less diversified contractors are unable to meet minimum require-

ments. We are an attractive partner on the largest infrastructure projects and

prestigious design-build-operate-maintain (DBOM) contracts, which combine

the nation’s top contractors with engineering firms, equipment manufactur-

ers and project development consultants in a competitive bid selection

process to execute highly sophisticated public works projects.

In addition to the Harold Structures mass transit contract, other civil opera-

tions in 2008 will include progressing the deck replacement on the Tappan

Zee Bridge in New York, completing the Passaic River Bridge in New Jersey,

as well as the construction of express toll lanes along I-95 in Maryland by

Cherry Hill Construction.

Civil Operations

Civil Operations Profile(dollars in millions)

End Markets 2007 Revenues 2008 Backlog*

Highways $116.1 $158.8Bridges $ 67.7 $115.0Mass Transit $ 6.2 $141.6Site Development $ 14.8 $ 0.6Wastewater and Other $ 30.0 $ 41.8

*(12/31/07)

Project LocationsFlorida Maryland New York New Jersey

Office Locations

Perini Civil ConstructionJohn A. Loftus, PresidentPeekskill, New York*Framingham, Massachusetts

Cherry Hill Construction, Inc.John A. Loftus, President and Chief Executive OfficerJessup, Maryland*Bartow, Florida

*Headquarters

11

(from top to bottom)Brooklyn Queens Expressway Reconstruction, NYTaylor Street Bridge, MDTappan Zee Bridge Deck Replacement, NY

12

First Quarter

Rudolph and Sletten, Inc. completes Museum of Contemporary Art San Diego (CA).

Perini Management Services, Inc. (PMSI) receives Letter of Appreciationfrom New York Air National Guard re: New Munitions Storage Complex,Hancock Field, Syracuse, NY.

James A. Cummings, Inc. awarded first LEED Project, $30 million FloridaAtlantic University College of Engineering & Computer Science Building.

John A. Loftus, P.E. appointed President, Perini Civil.

PMSI awarded 2007 Platinum Award for Engineering Excellence, Over-head Coverage System Program, Iraq, American Council of EngineeringCompanies (ACEC) of Massachusetts.

PMSI-led team receives National Engineering Excellence Award by ACEC.

Perini Building Company, Inc. receives Preservation Achievement Awardfrom Boston Preservation Alliance for 128 Beacon Street project.

Second Quarter

Perini Building Company, Inc. named “Top General Building Contractor”for Arizona, Nevada and New Mexico (ranked No. 1 in Nevada) bySouthwest Contractor, a McGraw-Hill Publication.

Perini Building Company, Inc. named “Construction Company of the Yearfor a Casino/Resort” by American Gaming Association. Red Rock Casino-Resort-Spa wins “Best Casino/Resort Construction Project over $100 mil-lion.” Pechanga Resort & Casino, Phase II wins “Best TribalCasino/Resort Construction Project.”

Modern Healthcare ranks Rudolph and Sletten, Inc. No. 5 among U.S. general contractors in Healthcare.

California Construction, a McGraw-Hill Publication, ranks Rudolph and Sletten, Inc. Top Contractor for Healthcare in California (based on revenues).

James A. Cummings, Inc. awarded $74 million New Timber Creek HighSchool for Orange County Public Schools (FL).

Perini Building Company, Inc. names Craig W. Shaw Chairman and ChiefExecutive Officer, Perini Building Company, Inc., Richard J. Rizzo ViceChairman, and Mark A. Caspers President, Chief Operating Officer.

Perini Building Company named “Construction Company of the Year” for Red Rock Casino-Resort-Spa at Global Gaming Institute.

Perini Corporation ranked No. 1 in the Boston Globe’s Annual Globe 100List of Best Performing Companies.

Perini Building Company tops off Tower I of Trump International Hotel & Towers, Las Vegas.

Rudolph and Sletten, Inc. Corporate Headquarters awarded Gold LEEDCI certification by the U.S. Green Building Council.

The Lawrence Berkeley (CA) National Laboratory Molecular Foundry,built by Rudolph and Sletten, Inc. awarded the Gold LEED certification by the U.S. Green Building Council.

James A. Cummings, Inc. receives STEP Platinum Safety Award from Associated Builders and Contractors, Central Florida Chapter.

Rudolph and Sletten Inc. project, Moffett Park Towers, ranked #3 “TopProject” by California Construction and named “Top Office Project” overall.

Projects under construction by Rudolph and Sletten, Inc.—500 CapitolMall, Kaiser Permanente Roseville Medical Office Building II, HitachiGlobal Storage Technologies, Sycuan Band of the Kumeyaay Nation Parking Structure and Site Improvements, and Bakersfield Memorial Hospital—ranked among year’s top projects by California Construction.

PMSI awarded U.S. Army Corps of Engineers “Project Delivery TeamMerit Award,” Overhead Coverage System Program.

Third Quarter

Kenneth R. Burk named Senior Vice President & Chief Financial Officer.

James A. Cummings, Inc. awarded $40 million contract for Total ProgramManagement by Broward County Schools (FL).

Rudolph and Sletten, Inc. named general contractor for $200 millionFoothill Oaks Casino, Placerville, CA.

Rudolph and Sletten, Inc. completes Harlyne J. Norris Research Tower at University of Southern California.

Fourth Quarter

James A. Cummings, Inc. completes $33 million Pines Middle School,Phase 1.

Perini announces new work in Iraq worth $68.5 million.

James A. Cummings, Inc. awarded Eagle Award—“Most OutstandingProject, Education”—for Wolf Lake Middle/Elementary School by Associated Builders and Contractors, Central Florida Chapter.

Cherry Hill Construction, Inc. “Project of the Year Safety Award” presented to I-895 NB GP Bridges.

Perini Corporation announces retirement of Director James A. Cummings.

Perini Civil awarded $139 million contract to construct Harold Structuresfor New York MTA, AMTRAK, and Long Island Rail Road.

Cherry Hill Construction awarded $87 contract on the I-95 Express Toll Lanes Project.

Rudolph and Sletten, Inc. awarded Construction Employers’ AssociationExcellence in Safety Award.

Rudolph and Sletten, Inc. awarded contract to build Moffett Towers Parcel3 located in northern California, valued at approximately $230 million.

James A. Cummings, Inc. completes $62.5 million Palm Beach Interna-tional Airport Parking Garage.

James A. Cummings, Inc. completes $39.5 million Coconut Grove Condominium, Ft. Lauderdale, FL.

Rudolph and Sletten, Inc. ranked by Sustainable Industries MagazineNo. 7 for the 2008 LEED Commercial Interiors (CI) Certification on theWest Coast, and No. 5 for number of LEED Accredited Professionals on the West Coast.

Company Milestones 2007

Corporate Executive Officers

Ronald N. Tutor Chairman & Chief Executive Officer

Robert Band President & Chief Operating Officer

Kenneth R. Burk Senior Vice President & Chief Financial Officer

John A. Loftus President Perini CivilCherry Hill Construction, Inc.

Craig W. Shaw Chairman &Chief Executive Officer Perini Building Company, Inc.

Richard J. Rizzo Vice Chairman Perini Building Company, Inc.

Susan C. Mellace Vice President & Treasurer

Peter J. Martinkus Vice President &Controller

Anthony J. Buccitelli Vice President Legal

Douglas V. MureVice President Human Resources & Risk Management

Stockholder MailingsStockholders who are registered under brokers’ names and who wish to receive direct mailings of the Company’s stockholder communicationsmay do so by writing to the Investor Relations Department of the Company at Framingham, MA 01701.

Stock ListingThe Company’s Common Stock (trading symbol: PCR) is listed on the New York Stock Exchange.

Transfer Agent & RegistrarComputershare Investor Services250 Royall StreetCanton, MA 02021

Investor RelationsTelephone (508) 628-2295 or submit inquiries via the internet at perini.com.

Availability of Form 10-KStockholders who wish an additionalcopy of the Company’s Form 10-K, filed annually with the Securities andExchange Commission in Washington,DC, may obtain one without charge via the internet at perini.com or by writing to the Investor Relations Department of the Company at Framingham, MA 01701.

EEO PolicyPerini Corporation is committed to the principles of Equal Employment Opportunity and Affirmative Action. This commitment requires that the Corporation comply with all applicablestatutes, regulations, and government orders pertaining to non-discriminatingemployment practices and also that we provide an atmosphere within the Corporation that will assure all persons the opportunity to succeed on their own merit, without regard to race, color, religion, national origin,sex, age, disability or their status as a special disabled veteran or Vietnam-era veteran.

Officers and Directors Stockholder Information

Construction Operations

Perini Building Company, Inc.

Craig W. Shaw Chairman & Chief Executive Officer

Richard J. Rizzo Vice Chairman

Mark A. CaspersPresident &Chief Operating Officer

Rudolph and Sletten, Inc.

Martin B. Sisemore President and CEO

James A. Cummings, Inc.

William R. Derrer President &Chief Executive Officer

Perini Civil

John A. LoftusPresident

Cherry Hill Construction, Inc.

Kevin J. Woods Executive Vice President/GeneralManager

Perini Management Services, Inc.

Robert Band President

Claude K. Olsen Senior Vice President Operations

Board of Directors

Ronald N. Tutor Chairman & Chief Executive Officer President, Tutor-Saliba Corporation Age: 67 Elected Director: 1997

Michael R. Klein (1,2,3*) Vice ChairmanChairman, CoStar Group Age: 66 Elected Director: 1997

Peter Arkley (3) President, AON Construction Services Group Age: 53 Elected Director: 2000

Robert Band President & Chief Operating Officer Age: 60 Elected Director: 1999

Willard W. Brittain, Jr. (1*)Chairman & Chief Executive Officer,Professional Resources on DemandAge: 60 Elected Director: 2004

Robert A. Kennedy (1) Retired Executive Age: 72 Elected Director: 2000

Robert L. Miller (2)Private Investor Age: 67 Elected Director: 2004

Raymond R. Oneglia (1,2*,3) Vice Chairman, O&G Industries, Inc. Age: 60 Elected Director: 2000

(1) Audit Committee (2) Compensation Committee (3) Corporate Governance &

Nominating Committee *Chairman

Annual ReportProject Management: Field CommunicationsCreative: Beagan DesignPhotography: Charles Field / various Cover photo: Aerotech Specialists, Inc.Photo of Harlyne J. Norris Research Tower (page 7): Benny Chan of Fotoworks

Compliance with NYSE Corporate Governance Listing StandardsAnnually, our Chief Executive Officer is required to certify to the New YorkStock Exchange that he is not aware of any violation by the company ofNYSE corporate governance listing standards as of the date of that certifica-tion, qualifying that certification to the extent necessary.

On June 6, 2007, our Chief Executive Officer submitted such certification, which contained no qualification.

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