Graña y Montero S.A.A. (NYSE: GRAM) (BVL: GRAMONC1) (“the Company” or “Graña y Montero”) a leading Engineering and Construction company, announced today that the Ministry of Transport and Communications, and its subsidiary GyM Ferrovias signed an addendum to the Concession Contract which will improve the system capacity with the acquisition of trains, railcars and complementary works for an amount of US$ 410 million (the total amount is US$ 505,478,106.63 including general tax sales, supervision, etc.).

This extension to the initial contract was subscribed by the Deputy Minister of Transportation, Henrry Zaira, the Chairman of the GyM Ferrovias Concessionaire, Gonzalo Ferraro, and the CEO of Line 1, Manuel Wu, in a ceremony that was presided over by the Minister of Transport and Communications, José Gallardo Ku.

Minister Gallardo highlighted that with this addendum, the concessionaire will be able to acquire a total of 20 trains and 39 railcars. Their fabrication, shipping to Perú, and operation should take between 18 and 24 months.

Moreover, he explained that with the gradual entry of the new trains, until completing the fleet, the frequency of each service will be reduced to up to 3 minutes. The trains will have six cars (one more than at present), so 48,000 passengers will be transported per hour and 500,000 passengers will be transported per day.

Meanwhile, Gonzalo Ferraro welcomed the government’s decision to invest in expanding Line 1 Lima Metro’s service capacity, since it has succeeded in transforming the city with a reliable, modern and safe transport system which has improved the quality of life of thousands of Peruvians who can now travel to their schools, work or recreation sites in the shortest time possible.

According to the manufacturer’s schedule, the first two trains will arrive by the end of 2017, whilst others will arrive at the beginning of 2018. Therefore, the frequency of each passing train could be reduced to 5 minutes.

During 2018, more units will continue to arrive, while the last ones will arrive by the end of that same year. By that time, it would be able to increase one railcar on each train and reduce the frequency to 3 minutes in the so-called rush hour. During peak hours, like weekends and when the number of passengers is reduced, the frequency will decrease from the current 10 minutes to 6 minutes.

INFRASTRUCTURE IMPROVEMENTS

  • With the new fleet of trains, the electrical system will be strengthened in Tranche 1 for reliability.
  • To improve accessibility for clients, and in order to give greater fluidity to the service, the stations La Cultura, Grau, Gamarra, Bayóvar and Villa El Salvador will be expanded considering that currently, they are the busiest.
  • For keeping the new trains, additional garages will be built in the Bayovar workshop.
  • To facilitate train maneuvers on the road and restore service more quickly in case of a contingency, 8 double switch points will be incorporated.
  • Seeking greater safety and reliability in the entry and exit station, a second access to the train yard in Villa el Salvador will be built.
  • LINE 1 will work so that the impact on customers, due to additional works, is minimized.

Currently LINE 1 of Lima Metro has a fleet 24 trains and transports 320,000 customers per day.

About Graña y Montero S.A.A.

Founded in 1933, Graña y Montero is the only Peruvian engineering and construction company listed on the Lima Stock Exchange since 1997 and in the NYSE since 2013. The Company has participated in the development of major engineering and construction projects in Peru, including large-scale, complex projects in the energy, mining, construction and real estate sectors.

It currently has subsidiaries in Chile and Colombia, and has been executing major projects in Panama, Bolivia, Jamaica and Ecuador. By the end of 2015, the Group’s international revenues amounted to approximately US$ 600 million.

With 83 years of operations, the Company has leveraged its engineering and construction expertise into complementary lines of business, such as the development, ownership, operation and maintenance of infrastructure assets, real estate developments, and the provision of technical services. The Company has significant investments in infrastructure concessions, such as three toll roads and Line 1 of the Lima Metro.

Graña y Montero S.A.A.Investor Relations:Samantha Ratcliffe, 511-213-6573samantha.ratcliffe@gym.com.perelacion.inversionistas@gym.com.pehttp://investorrelations.granaymontero.com.pe/

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