Sterling Construction Company, Inc. is Low Bidder on $5.5 Million Contract for City of Conroe.

HOUSTON -- Sterling Construction Company, Inc. (AMEX: STV), ("Sterling" or the "Company"), today announced that it was the low bidder on a $5.5 million contract for the City of Conroe, Texas. The project encompasses road paving, bridge work and the building of underground utilities. Work is expected to commence in January 2006 and to continue for approximately 12 months.

Sterling, through its wholly-owned subsidiary Sterling Houston Holdings, Inc., (the "Construction Segment") is primarily a heavy civil construction company that specializes in municipal and state highway contracts for paving, bridge, water and sewer and light rail projects. Sterling also operates Steel City Products, Inc. (the "Distribution Segment"), a wholesale distributor based in Pittsburgh, Pennsylvania.

This press release includes certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, including overall economic and market conditions, competitors' and customers' actions, and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in the Company's filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by the Company of future financial results or other events is only a statement of management's belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect management's belief, and the Company does not undertake to update publicly its predictions, whether as a result of new information, future events or otherwise.