July 2004

(Fresno County, California) - Zachry Construction Corporation and Barton Malow Company will team together as joint venture partners BMZ to construct a 97 Mw peaking plant in Fresno County, California. Zachry has broken ground on the new project, which will help to alleviate the strain of the Fresno area's electrical system during peak demand times. This job represents a new opportunity for Zachry: participating as a construction manager in a joint venture on an EPC power project in California.

The $35.6 million plant is being constructed for the Kings River Conservation District in Fresno. BMZ will provide engineering and construction services for the plant. Through subcontracts within the joint venture, BMZ will subcontract the construction management to Zachry, while Barton Malow will be responsible for all aspects of direct labor on the project and for BMZ's EPC performance. The project will be located on a 19-acre site near Malaga, California. BMZ will begin construction during the second half of 2004, with commercial operation expected to commence by the summer of 2005.

Electricity will be generated by two natural gas-fired combustion turbine generator sets, each equipped with a selective catalytic reduction (SCR) unit to control nitrogen oxide (NOx) emissions. The new peaking plant will be connected to PG&E Corporation's Malaga Substation, and the electricity will be sold to the California Department of Water Resources under a 10-year contract.

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