AF Group reports a very good first quarter

AF Group reports a very good first quarter with

earnings before tax of NOK 91 million (NOK 50

million) for the period.

The AF Group reported revenues of NOK 1,423 million

(NOK 1,258 million) and earnings before tax of NOK 91

million (NOK 50 million) for Q1 2010. This

corresponds to a profit margin of 6.4% (4.0%) and

earnings per share of NOK 0.93 (NOK 0.50). Total

order book stood at NOK 6,571 million (NOK 4,961

million) as at 31 March 2010.

AF Gruppen had a cash flow from operating activities

of NOK 84 million (NOK 238 million) in Q1 2010.

Return on average capital employed was 39.1% (32.1%).

AF places high priority on Health, Safety and the

Environment (HSE) work and has reduced its LTI rate

through systematic and long-term efforts. The LTI

rate in the Norwegian operations was 0.9 and the

sickness absence rate was 3.7% in Q1.

"It has been a long winter with intense competition

and tough market conditions. Nevertheless, the AF

Group started off 2010 in line with expectations. We

have seen several indications that the economic

downturn has started to recede. The increasing

problems in the so-called PIIGS countries in recent

days, however, may dampen this trend. Therefore there

is still reason to be cautious about the future. Our

opportunity lies in developing our achievement

culture so that we can increase the company's

attractiveness," says Pål Egil Rønn, CEO of the AF

Group.

For further information:

Pål Egil Rønn, CEO, mobile +47 909 57 713

Sverre Hærem, CFO, mobile +47 952 45 167

Wibecke Brusdal, Director Corporate Communications,

mobile +47 930 93 150

Internet: www.afgruppen.com

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